With plans for a $65 million redevelopment of its Drummond St facility on hold, the hospital has agreed to look at alternative options.

Mayor David Vendy met with hospital chief executive officer John Fogarty yesterday when he flagged the idea of St John of God Health Care moving to the Civic Hall site.

Mr Fogarty said he would investigate the site, but stressed that his preferred option was to redevelop the Drummond St site.

"At this point in time, we have not actively considered alternative sites to the existing site," Mr Fogarty said.

"I did meet with the mayor and the CEO of the City of Ballarat today and have given them an undertaking that we would look at the potential of the Civic Hall site.

"However, it is likely that to rebuild on another site would cost significantly more than the $65 million for the current proposal for the redevelopment."

The multi-million dollar redevelopment of the existing Drummond St site hit a snag when the healthcare provider's board refused to ratify the hospital's original proposal.

The hospital has since been asked to prepare a second submission, which it hopes to re-present to the board later this year.

Cr Vendy said one of the drawbacks against St John of God leaving Drummond St was the close co-operation built up between St John's and the neighbouring Ballarat Base Hospital.

The two hospitals are currently linked by a bridge over Mair St.

"We suggested that they should have a look at the Civic Hall site, although they gave the impression that it would be fairly expensive," Cr Vendy said.

"They've agreed to take some preliminary measurements and we'll see where they go from there.

"We feel parking could be as good, if not better, than their existing arrangement.

"But one drawback could be the close relationship they've built up with the Base Hospital."