The Victorian Government Budget Targets Hospital Expansion in Growing Suburbs and Regions

The Victorian Government has unveiled a major healthcare investment plan aimed at easing pressure on hospitals and improving access to care in rapidly growing suburbs and regional communities.

According to the Australian Institute of Health and Welfare (AIHW), emergency departments across Australia are under increasing strain. In 2024–25, public hospital emergency departments recorded 9.1 million presentations. However, only 53% of patients were treated within four hours—down from 55% the previous year and 67% in 2020–21—highlighting a steady decline in performance.

New Urgent Care Centres to Ease Pressure

To help reduce demand on busy emergency departments, new Urgent Care Centres will be established at Cranbourne Community Hospital and Craigieburn Community Hospital. These centres are expected to provide faster, more accessible treatment options for non-life-threatening conditions, offering relief to overcrowded EDs.

Major Investment in Werribee

A key component of the budget is a $95 million upgrade of the Emergency Department at Werribee Mercy Hospital. Once completed, the expanded facility will feature 67 treatment bays—doubling its current capacity.

The redevelopment will also include:

• Dedicated mental health and alcohol and drug treatment areas
• Separate but co-located paediatric and acute care units
• A short-stay observation ward

The government estimates the upgraded ED will treat an additional 25,000 patients each year once fully operational.

Boost for Regional Healthcare Access

Recognising ongoing disparities in rural healthcare, the government will invest $7.1 million in a new PET scanner at Shepparton Hospital. This advanced diagnostic equipment will improve access to critical services, including cancer detection, and reduce the need for patients to travel long distances.

AIHW data shows that Australians living in remote and very remote areas face significant barriers to healthcare access, including travel distance, limited services, and higher costs.

Broader Hospital Upgrades Across Victoria

Additional funding has been allocated to support improvements at several hospitals, including:

• Melton Hospital
• Angliss Hospital
• Mernda Community Hospital
• University Hospital Geelong
• Pakenham Community Hospital

Victorian Health Minister Harriet Shing said the investment focuses on delivering healthcare services where population growth is strongest.

“We are building and expanding hospitals to ensure Victorians can access the care they need, closer to home,” she said.

Sources:

https://www.aihw.gov.au/reports/rural-remote-australians/rural-and-remote-health

https://www.aihw.gov.au/hospitals/topics/emergency-departments

https://www.premier.vic.gov.au/labor-building-and-opening-new-hospitals