We benefit from $1.1B Peninsula University Hospital growth

THE largest ever health infrastructure project in Melbourne’s south-east will open its doors on 20 January 2026 with construction complete on the $1.1 billion Frankston Hospital redevelopment.

The project has obvious benefits for South Gippsland and Bass Coast after local hospitals merge with the Bayside Health network of hospitals on January 1, 2026.

Minister for Health Infrastructure Melissa Horne and Minister for Mental Health Ingrid Sitt toured the new 12 storey tower on Saturday, December 13, the day that the impressive new Phillip Island Community Hospital threw open its doors to visitors for the first time.

To be known as the ‘Peninsula University Hospital’, the former Frankston hospital will have capacity to treat 35,000 more patients every year.

Interim CEO of Bass Coast Health Professor Simone Alexander welcomed the developments at Frankston.

“It’s great news for the whole Peninsula area but as part of the Bayside Health network also provides a boost to the level of services available to this region as well,” said Ms Alexander.

Once fully operational, the new tower will include 130 more beds, new spaces for mental health and oncology services, 15 new operating theatres and a rooftop helipad to support the safe transfer of critically ill patients.

The existing emergency department has also been expanded to include a dedicated paediatric zone, and a new mental health and alcohol and other drugs hub – providing fast-tracked, tailored and specialised treatment for patients who need it, while easing pressure on the emergency department and improving safety.

The project will also deliver more care for local women and children with specialist women’s and children’s services including new maternity, obstetrics and paediatric wards, a women’s clinic and a special care nursery to support babies in their critical first weeks and months.

Taking up an entire floor, it will include endometriosis and pelvic pain multidisciplinary clinic services, and an advanced laparoscopic gynaecology specialist and allied health team, including physiotherapy. Designed to reflect the landscape of the Mornington Peninsula, the reception area features three massive wooden beams resembling native trees and a large canopy designed to imitate sea foam found along the nearby coastline.

Since ground broke on the project in June 2022, three million hours of work have been completed by more than 5,200 workers on site. The Frankston Hospital redevelopment is being delivered by the Victorian Health Building Authority in partnership with Peninsula Health and the Exemplar Health consortium.

“This is the largest ever health infrastructure project in the region – with millions of hours of work completed by thousands of construction workers, it’s fantastic to see main works complete,” said Minister for Health Infrastructure, Melissa Horne.

“With a new mental health and AOD hub in the emergency department, the redeveloped Frankston Hospital will provide better access to specialist mental health care for families in the south-east and the Mornington Peninsula,” said Minister for Mental Health Ingrid Stitt.

“The redeveloped Frankston Hospital will mean more families in the south-east and the Mornington Peninsula can get the care they need faster and closer to home,” said Minister for Health Mary-Anne Thomas.

Already open and operating ahead of the busy holiday season, Phillip Island Community Hospital boasts an emergency department that is three times the size of the initial ED at Cowes with more services to be added progressively over the next few months including chemotherapy, dialysis and day surgery.

Since July 29 this year, the service, which offers the latest technology, has completed 400 CT scans and more than 800 x/rays.