Coalition pledges $850 million for new West Gippsland hospital

Victoria's opposition has promised to accelerate construction of a new West Gippsland hospital, committing $850 million to the project should the Liberal-National Coalition win the state election in November 2026.

Opposition Leader Jess Wilson's pledge represents a $175 million increase on the Labor government's 2022 commitment of $675 million for the facility, signalling the Coalition's determination to fast-track the long-delayed infrastructure project serving one of regional Victoria's fastest-growing communities.

Years of delays despite prior commitment

The new hospital has become a politically contentious issue in West Gippsland, with no construction commencing despite Premier Daniel Andrews announcing the project four years ago. The 223-bed facility was promised for delivery by 2028 at a greenfield site in Drouin, east of Pakenham.

While the Victorian government allocated funding for planning and development in the 2023 state budget—as part of a broader $320 million fund to prepare seven major hospital projects across the state—the actual building work remains stalled.

"Work will commence immediately if the Coalition is elected," Shadow Health Minister Georgie Crozier said, highlighting the party's commitment to breaking delays that have frustrated locals and healthcare workers.

Workforce accommodation included in expanded plan

The Coalition's $850 million commitment extends beyond the basic hospital infrastructure, incorporating dedicated worker accommodation—a critical component addressing regional Victoria's persistent recruitment and retention challenges in the health sector.

Regional hospitals throughout Victoria have struggled to attract and retain medical professionals, with housing affordability and access to amenities cited as significant barriers. The inclusion of worker accommodation suggests the Coalition's plan attempts to address these systemic workforce issues alongside expanding bed capacity.

Growing demand in West Gippsland

West Gippsland's population growth has intensified the urgency of hospital expansion. The region, encompassing areas such as Drouin, Warragul, and surrounding communities, has experienced rapid residential development driven by urban sprawl from Melbourne and lifestyle migration.

Current health services in the region operate under significant capacity constraints, with residents often requiring transport to Melbourne hospitals for specialist treatment. A new 223-bed facility would substantially improve local healthcare accessibility and reduce demand on metropolitan services.

Election year commitment

The opposition's announcement occurs amid heightened focus on health infrastructure ahead of November's state election. Both major parties have signalled commitment to addressing Victoria's hospital bed shortage and regional healthcare disparities, with infrastructure projects playing a prominent role in their respective campaign platforms.

The Coalition's increased funding offer—$175 million above Labor's 2022 pledge—appears designed to demonstrate credibility on healthcare delivery and responsiveness to regional communities that have experienced extended service gaps.

The West Gippsland hospital project will likely remain a significant election issue, with voters in the region closely monitoring which party can deliver tangible progress on construction once parliament resumes after the November election.

This article is based on reporting from ABC News.