North Canberra Hospital Redevelopment Priced at $1.5 Billion

A $1.5 billion price tag has been placed on the new North Canberra Hospital, with the redevelopment to include more than 200 inpatient beds, a birth centre and at least 700 additional parking spaces.

Details of the project — a 2024 ACT Labor election promise to replace the existing hospital at Bruce — have been unveiled as part of the ACT government's latest budget, with another $1.34 billion committed to the redevelopment over the next seven years.

The first stage of the project will include a new seven-storey clinical services building with a "state-of the art" emergency department, 14-bed intensive care unit, and eight operating theatres.

There will also be a birth centre with six birthing suites, a maternity inpatient unit and a special care nursery.

Some existing buildings on the northern side of the precinct, including the childcare centre, will be demolished to make room for the main building.

But, there is a new 100-place childcare centre planned.

Construction to begin next year

Main works on the new building had been slated to start this financial year, but Health Minister Rachel Stephen-Smith said construction was now not expected to begin until 2027-2028.

"Partly that is around some of the environmental assessments and some of the detailed design work that's just taken a bit longer than we had expected," she said.

"Those were required in order to ensure that we could move ... and open a new childcare centre before we demolish the current one, [and] move some of the services that are currently on the northern block.

"That preparatory work, has taken a bit longer than we had hoped."

Ms Stephen-Smith said the staged redevelopment meant not every service in the current main hospital building would be moved into the new stage one building.

"Mental health, for example, will stay where it is and probably be expanded in its current site until the second stage build."

Feedback sees parking expanded

Ms Stephen-Smith said there had been extensive consultation on the hospital's design and planning, and feedback on car parking had seen extra spaces added — taking the total number of parking spots to more than 700.

"We've certainly heard the feedback from people about parking and anyone who's been to North Canberra Hospital recently will find that parking is extremely hard to come by," she said.

"Some of the [new] parking will be underneath the new stage one clinical services building, and some of it will be on grade but very close by.

"So right next to the building or on the other side of Mary Potter Drive, the northern side, which is where the new childcare centre is going to be built as well."

In the meantime, Ms Stephen-Smith said they were also working on some short-term parking options.

"There is some parking over at the CIT in Bruce with a shuttle bus and we're working on ways to encourage more staff to use that parking and incentivise that," she said.

"But we will also work through other options, particularly during the main works construction phase as well."

Health 'government's first priority'

In the government's pre-budget announcement, treasurer Chris Steel said health was "always the government's first priority" and the 2026-2027 budget reflected that, with the additional $1.34 billion taking the total funding for the new hospital to $1.5 billion.

"We do provide a high level of service to Canberrans when it comes to health care, and that's exactly what our community expects and we will continue to do that," he said.

In a recent report on the ACT's fiscal position, economist Saul Eslake said the government was spending three-quarters of its budget on health.

He said that sector offered the greatest opportunities for expenditure savings, as the government attempted to reduce its deficit.

But Mr Steel said the government wasn't going to shy away from health infrastructure investment.

"We have looked very closely at the infrastructure program to make sure that it is sustainable and deliverable," he said.

"But we need to invest now in this critical health infrastructure to support acute services on the north side, help take pressure off health services on the south side, and build for the future.

'Past its used-by date'

Canberra Liberals leader Mark Parton agreed the new hospital was necessary, but said he had concerns about how it would come together.

"So many aspects of the new components of Canberra Hospital are just not fit for purpose," Mr Parton said on ABC Radio Canberra.

He pointed to issues with the Behavioural Assessment Unit — where staff were recently trapped for hours when a patient produced a knife — and an area where he said he had been told cobblestones made it difficult for wheelchair users.

But Mr Parton said he would look more closely at the budget papers and the hospital proposal before passing judgement.

"It's difficult to assess individual components of the budget without assessing the whole thing," he said.

"So we'll be having a good look when the documents are laid on the table on June 10, but up until then obviously we'll be examining the information that's been drip-fed to us until now.

Carlyn Fidow, from the ACT branch of the Australian Nurses and Midwifery Federation (ANMF ACT), was similarly positive.

"ANMF ACT welcomes the ACT Government's investment in the Northside Hospital," she said.

"Our members have long advocated for modern, fit-for-purpose facilities that reflect the complexity of contemporary healthcare.

"This is a positive step for Canberra's health system, but it must be matched by recognition of the people who will actually make it work — nurses, midwives and AINs deserve wages and conditions that reflect their value."

The current hospital, built in 1979, will continue to operate during construction, with the first stage of the new hospital expected to be finished in 2031.