Western Australia’s public hospital system is set for a generational transformation, with the state government announcing plans to deliver three major public hospital projects under its new $1.5 billion Building Hospitals Fund.
The initiatives include the proposed purchase of St John of God Mt Lawley Hospital, a new emergency department for Royal Perth Hospital, and a greenfields redevelopment of Peel Health Campus.
Together they represent what Premier Roger Cook described as “a historic day for healthcare in Western Australia.”
Negotiations are at an advanced stage for the State Government to acquire the 197‑bed St John of God Mt Lawley Hospital from St John of God Health Care, with the aim of bringing the facility into public operation in 2026.
Some beds are already contracted to WA Health, but the purchase would add up to 100 new public beds and eight additional operating theatres to the State system next year.
The hospital’s land also offers potential for future expansion of services.
“Delivering new hospital capacity is a key part of ensuring all Western Australians can access the healthcare they need, when they need it, and my government is getting on with the job,” Premier Cook said.
“Bringing St John of God Mt Lawley Hospital into public hands and delivering rescoped redevelopments at Royal Perth Hospital and the Peel Health Campus will significantly expand the capacity of our public system.”
Following a strategic review led by the newly established Office of Major Infrastructure Delivery (OMID), the WA government has confirmed that stage one of the Royal Perth Hospital redevelopment will now proceed at the S block site.
The new location allows construction of a six‑storey building with two levels dedicated to a new emergency department that will increase capacity, improve ambulance access, and provide dedicated mental health services — all without disrupting current operations.
The state has allocated $33 million for detailed planning, with construction scheduled to begin in 2026.
For Mandurah and the Peel Region, the original Peel Health Campus redevelopment will be replaced by a new six‑storey hospital on a greenfields site adjacent to the existing campus.
The OMID assessment found this approach will accelerate delivery, minimise service disruption, and open up opportunities to repurpose the old buildings for future health uses such as aged care.
The new Peel Health Campus will feature an expanded 39‑bay emergency department, a dedicated mental health emergency centre and inpatient unit, cancer treatment facilities, palliative care services, additional inpatient beds including a high‑dependency unit, and a new operating theatre complex.
Planning for the campus has been allocated $37.7 million, and construction is due to start in 2026.
“Our government’s strong financial management enables us to deliver the infrastructure and services our community needs,” said Deputy Premier and Treasurer Rita Saffioti.
“The creation of the $1.5 billion Building Hospitals Fund will enable us to deliver more exciting new projects for our public hospital system.”
Health Minister Meredith Hammat said the projects represented a new chapter for WA Health.
“If negotiations with St John of God Health Care are successful, we are ready to take on this new site and make it fully available for public use for the first time,” she said.
Health Infrastructure Minister John Carey added that the reshaped program “will deliver new facilities that will serve the public health system for decades to come, while limiting disruption during construction,” and that the Mt Lawley purchase “will add new beds to the public system quicker than we can build them.”
The $1.5 billion Building Hospitals Fund builds on a $500 million commitment announced in September with a further $1 billion in new investment.
It brings the government’s total health infrastructure commitment this term to $4.7 billion — the largest hospital building program in Western Australia’s history.
