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.
 acknowledges the government’s recently announced $10 billion housing fund initiative to construct 30,000 new homes in the next five years as a positive initial step in addressing the immediate housing needs of Australia. However, this vision needs to encompass not just housing, but the development of sustainable and resilient infrastructure to effectively support population growth. *The Intergenerational Report 2023*, recently released by the Treasurer of Australia, echoes this necessity, outlining the critical role of infrastructure in supporting socio-economic development and enabling economic and productivity growth. It highlights the continued and increasing investment in infrastructure to help reduce congestion and ensure the smooth, efficient movement of goods and people nationally and internationally. These measures are instrumental in enhancing connectivity, providing access to employment, healthcare, education, and community activities. CJC Management believes that true, sustainable growth requires a far-reaching, holistic approach. While appreciative of the government's focus on housing, the company recognises that extensive and collaborative efforts are needed beyond this sector. CJC Management Group Managing Director Colin Calder said: “The $10 billion housing fund and the Federal Government’s commitment to transport infrastructure expenditure give us a framework upon which we can construct a strong and resilient infrastructure for Australia. As the report suggests, a strategic review of the Infrastructure Investment Program and enhanced planning and coordination with states and territories are essential to improve the quality and sustainability of long-term infrastructure spending.” The Australian engineering and construction industry is changing, especially in regards to the management of project delivery risks. Calder believes that to adapt to this changing landscape, “Organisations will need to establish robust governance, incorporate thorough risk management practices, and employ advanced digital systems for accurate reporting and forecasting. Early engagement with contractors and the adoption of adaptable, performance-incentivised delivery models will be crucial for navigating this emerging industry scenario efficiently.” The construction industry continues to face numerous challenges, including escalated material costs, labour issues, and supply chain disruptions, which are contributing to poor project performance. According to KPMG, with only half of the projects being completed on time, contractors worldwide including in Australia, are under significant pressure. Despite these obstacles, there’s a substantial opportunity for improvement in the sector. Organisations handling major projects should prioritise proper delivery and procurement models, precise cost estimates, and realistic schedules. Emphasis should also be on comprehensive risk management, cost analysis, fair risk distribution, efficient project management offices, solid governance, integrated project controls, and utilising data analytics and technology to boost project performance and productivity. A growing trend is evident as the construction industry increasingly adopts diverse technologies including mobile platforms, AI, and robotic process automation. Alongside the notable surge in modular or offsite manufacturing, these advanced technologies and methods are poised to markedly enhance the industry's efficiency and overall performance. Emphasising the importance of advanced tools, the sector is turning its attention towards project management information systems, integrated project controls, building information models, and sophisticated data analytics to amplify return on investment in construction projects. ESG considerations are emerging as a central focus not just in Australia, but globally in the infrastructure and construction sectors. Organisations are actively urging the industry to embrace more environmentally sustainable practices. Calder said: “This push is resulting in a significant shift with industry leaders establishing ambitious targets for reducing carbon footprints, waste, and pollution and heightening biodiversity awareness.” In addition, there is a marked effort to enhance diversity, equity, and inclusion within the industry, all factors that are vital for future success. . “We are beginning to witness the industry not just talk about, but also act upon the belief that a diverse workforce is pivotal for enhancing project resilience. There is still a long way to go but, this industry approach effectively tackles disruption, brings fresh skills and perspectives to the forefront, and adeptly handles challenges tied to scheduling, remote working, and job site travel. To ensure continued progress, the industry needs to hold firm in its commitment to fostering inclusivity, investing in training and development, and implementing policies that support a diverse and equitable workplace,” said Calder. As Australia takes steps toward infrastructural improvement, Calder concludes that it is vital for the entire industry to look beyond traditional construction. “The inclusion of digital innovation, environmental sustainability, and workforce diversity is essential for the journey ahead. Together with other industry leaders, CJC Management is ready to share insights and collaborate extensively to ensure that our collective infrastructure robustly meets future demands and challenges particularly as our population grows,” said Calder.](https://www.buildaustralia.com.au/wp-content/uploads/2023/10/shutterstock_1108946396_edited-1000x667-1.jpg)
