Mt Lawley Hospital buy-out: Taxpayers to fork out $80 million as Government buys hospital from St John of God

Taxpayers will fork out $80 million for the purchase of the Mount Lawley Hospital from St John of God, to add an extra 118 beds to the public system. The total cost to commission and commence operations will add up to $224.8 million, including $88 million for new medical and ICT equipment and $34 million for staff onboarding and training, as part of next week’s State Budget. Health Minister Meredith Hammat said the price-tag is worth it, despite the August 31 start date for the Mount Lawley Hospital that will miss all of winter. “Adding an entire hospital to our public health system is a huge deal, and I’m pleased to say that the deal is now done,” she said. “We look forward to welcoming many more doctors, nurses, allied health professionals and other support staff into the ever-growing WA Health workforce. “This is about boosting capacity in our public health system now and into our future.” The Government is already leasing 78 of Mount Lawley’s 196 beds. Early access to 53 of the 118 remaining beds has been secured as part of the Government’s winter strategy to ease pressure on emergency departments. A full breakdown of Labor’s pledge to add another 954 beds over four years can be revealed for the first time, with the Government including the extra 274 beds at the new women’s hospital under construction in Murdoch. It’s also promising an extra 40 beds in Fremantle, 10 in Rockingham and 93 in Bunbury on top of previously announced expansions at Midland, Albany and Geraldton. “Through the 2026-27 State Budget, we’re locking in more beds to ensure all Western Australians can get the healthcare they need, when they need it,” Premier Roger Cook said. But the Opposition has pre-emptively dubbed Labor’s new winter hospital strategy a “sham”, after leaked emails claimed operating theatres will be closed at Sir Charles Gairdner Hospital and mental health beds transitioned to aged care in Cockburn - to free up space for flu patients. Half of an 120 additional hospital beds at Joondalup and Midland hospitals will miss the start of the flu season. With one day left to tally April has already recorded 3,878 hours of ambulance ramping, above the 3,843 hours recorded in the April last year - before three consecutive months of recorded ramping above 7000 hours in July, August and September. The plan to purchase SJOG Mt Lawley was announced last November, when the Government axed a revamp of the Perth Convention and Exhibition Centre and said it would instead spend $1.5 billion to buy a hospital, build a new Peel hospital and a bigger upgrade of Royal Perth Hospital - in a bid to stem the tsunami of negative health headlines. It’s already been confirmed next week’s Budget will include an extra $500 million to take the Building Hospitals Fund to a total of $2 billion, to manage construction cost blowouts. A further $214 million is also being added to the capital maintenance funding to improve ageing health infrastructure. A blistering review of hospital maintenance warned in January that planning was “predominantly reactive” with limited oversight, no dedicated funding for ageing assets and a growing backlog - after The West’s Hospital of Horrors investigation uncovered leaks and mould at Sir Charles Gairdner Hospital.