$50M Fund Launched for Health Asset Maintenance

  • Cook Government sets up additional, targeted fund for hospital maintenance blitz
  • Fund will focus on projects at ageing hospitals Sir Charles Gairdner Hospital, Royal Perth Hospital, and Armadale Health Service
  • Fund in addition to State Government's $3.2 billion health infrastructure program and maintenance programs
  • Cook Government will conduct a snap audit and review to determine if maintenance funding is being spent in areas of most need

The Cook Government will establish a $50 million Health Asset Maintenance Fund to prioritise maintenance at the State's older hospitals.

The fund will roll out across 2025-26 and 2026-27 and will focus on projects at Sir Charles Gairdner Hospital (SCGH), Royal Perth Hospital (RPH), and Armadale Health Service.

The dedicated fund is in addition to the State Government's existing hospital maintenance budget for 2025-26 of $271 million. During the final four years of the Barnett Government, health maintenance funding averaged $174 million per year.

The new funding is also in addition to the State Government's $3.2 billion health infrastructure budget over the next four years, which includes $113 million in capital works projects in progress at Sir Charles Gairdner Hospital. This includes a $50 million expansion of the emergency department (ED) and a new $25 million intensive care unit (ICU).

Existing funding for health service providers for minor repairs and upkeep and the minor building and works program will continue

A team from the Department of Housing and Works will be engaged to work with the Department of Health to deliver projects for the hospital maintenance blitz.

In parallel with the establishment of the Health Asset Maintenance Fund, a snap audit and review into the management of hospital maintenance will be undertaken.

The review will facilitate improved procurement and contract management practices and bolster hospital maintenance into the future.

It will also look at whether there are opportunities for improvements to procurement and management practices to ensure value for money for taxpayers.

The review will be undertaken by former Under Treasurer Michael Barnes and former Department of Health Director General Neale Fong. It will be jointly overseen by the Department of Premier and Cabinet, the Department of Treasury and Finance, and the Department of Health.

As stated by Premier Roger Cook:

"I've said that my priorities are jobs, health and housing this term.

"Which includes a commitment to ensuring every Western Australian can get access to the healthcare they need, when they need it.

"We continue to work with the Commonwealth to deliver more GPs, urgent care clinics and aged care beds - so that people can access the health care they need, without going to an emergency department. But, maintaining our ageing assets, while we deliver on this plan is also critical.

"We know we have some ageing infrastructure that needs careful management, and we're listening to the concerns of workers.

"This extra money - in addition to the $271 million we already have budgeted for hospital maintenance this year - will see us prioritise repairs and maintenance at our older hospitals.

"In addition, my government will conduct an audit to assess how hospital infrastructure is maintained by various Health Service Providers - to see if any improvements can be made to processes and ensure funding is spent effectively in areas of most need."

As stated by Health Infrastructure Minister John Carey:

"Our government is rolling out an ambitious $3.2 billion health infrastructure program, including investments to upgrade existing assets.

"We are already investing around $113 million in specific upgrades at Sir Charles Gairdner Hospital and this maintenance blitz is on top of these works and existing maintenance spending.

"It will also fund a range of maintenance works at Royal Perth Hospital and Armadale Health Service, as we continue to invest in our ageing hospitals.

"This additional investment comes as we progress a redevelopment of the RPH emergency department and upgrade the ED and ICU at SCGH."

As stated by Health Minister Meredith Hammat:

"Ensuring our health infrastructure remains fit-for-purpose is key to delivering the high-quality care Western Australians expect from our health system.

"At the same time, we are also investing record amounts to reduce pressure on our emergency departments, increase hospital capacity and make sure Western Australians are receiving treatment in the most appropriate setting.

"This additional funding and review are real, practical ways we can strengthen our health system and reassure patients and staff they are in the best care."

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