Construction Begins on $1.1 Billion New Hospital in Mandurah

Construction has started on a new five-storey hospital in Mandurah, south of Perth, at a total cost of more than $1.1 billion.

It is being built on vacant land next to the existing Peel Health Campus and is due to open its doors in early 2029.

Excavators were busy preparing earthworks on site today, with the main works contract awarded to Built Australia and Sacyr Construction.

The Cook Labor government has already spent $152 million on new water and electricity infrastructure and has allocated a further $950 million for construction.

The new hospital will have about 300 beds and add 111 beds to the state's hospital system.

It will have a larger emergency department than the Peel Health Campus, a mental health emergency centre, maternity and out-patients services, palliative care services, and new cancer treatment services.

Premier Roger Cook said the Peel region was one of the fastest growing in the state and infrastructure needed to keep pace.

"It means people in Mandurah, the surrounding suburbs and across the Peel region will be able access more care closer to home, reducing the need to travel to Perth for care and treatment," Mr Cook said.

The hospital is being funded through the government's $2 billion Building Hospitals Fund, which has previously been used to pay for the $807 million Royal Perth Hospital upgrade and to buy the 196-bed Mt Lawley Hospital for $224 million.

Health Infrastructure Minister John Carey said this did not mean that fund had now been run down because it would be progressively topped up.

All services currently provided at the Peel Health Campus will be replaced or expanded at the new hospital.

Health Minister Meredith Hammat said the new mental health services would service people in the Mandurah region.

"Expanding access to mental health care remains a priority for our government and making sure that our infrastructure meets the needs of the community is a really important way we can provide better models of care for people who are experiencing mental health crises," she said.

Another $1 million is being allocated for master planning for upgrades to the Rockingham General Hospital.

The government predicts demand for health services in Rockingham and surrounding areas will increase sharply in the next two decades, particularly for people aged 45 and over.

It is also forecasting growth due to expansions to the HMAS Stirling naval base through the AUKUS nuclear submarine pact with the United States and the United Kingdom.