Victoria and NSW have struck a deal on a $558 million border hospital redevelopment as the two state governments join forces in the lead-up to state elections.
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Victorian Labor Premier Daniel Andrews and NSW Liberal counterpart Dominic Perrottet made the announcement at Albury Base Hospital on Thursday.
Both states will each chip in $225m, on top of the $108m already committed by the NSW and federal governments.
Construction on the hospital, to be carried out in three stages with a focus on acute clinical services, is expected to commence in 2024 and be completed by 2027.
The redevelopment includes a new helipad, multi-level car park, neonatal care, operating theatres, a 32-bed mental health ward, and more outpatient and specialist treatment spaces.
Albury Base Hospital will continue to operate throughout the build.
The local health service, Albury Wodonga Health, operates on a shared funding model between the Victorian and NSW governments but is run by the southern state.
Hospital services in the twin cities are split across two campuses and patients often need to travel back and forth.
A master plan for a new hospital to serve the twin cities was due to be completed by November last year but has been closely guarded by the Victorian government.
"The people of Albury Wodonga have been calling for new, state-of-the-art facilities and this is what we will deliver," Mr Perrottet said.
"The NSW and Victorian governments are also in negotiations to deliver a new and improved health service management agreement."
The population in and around Albury Wodonga is expected to grow 30 per cent by 2036.
"This is a really significant day, a massive investment in new care," Mr Andrews said, adding Albury Base Hospital was where his late father received cancer treatment.
Mr Andrews said acute services would be run from the Albury campus and consultation was yet to occur on the ongoing role of the Wodonga campus.
In Geelong to promise a $500m hospitals package for the area, Opposition Leader Matthew Guy bristled when asked about the premier appearing with the NSW Liberal leader.
"I don't care who he campaigns with. He could front up with Kim Jong-un or Jerry Seinfield. It doesn't bother me," Mr Guy told reporters.
In June, the Victorian coalition pledged $300m to rebuild the Wodonga hospital campus if they win the state election on November 26.
Mr Andrews stressed the funding agreement between Victoria and NSW is not contingent on Labor winning another term.
Wodonga is within the Victorian state seat of Benambra, held by four-term incumbent Liberal MP Bill Tilley on a 2.6 per cent margin.
Mr Tilley said the hospital plan was a bandaid on an open wound and doubled down on calls for a new hospital in Wodonga.
"Wodonga doesn't need a lick of paint on an old hospital, but an entirely new one in the heart of our community," he told AAP.
"The Liberal plan will deliver a new, modern, fit-for-purpose Wodonga hospital on a greenfield site."
Australian Medical Association Victoria president Roderick McRae welcomed the hospital redevelopment after members complained it had passed its used-by date.
"It has been calling for a redevelopment for many years and looks forward to improved facilities for the healthcare of an important regional centre," he told AAP.
Australian Associated Press
