The Maryborough District Health Service will receive $94.8 million in a major upgrade of the regional hospital as part of the 2021/22 Victorian Budget.
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Member for Western Victoria Jaala Pulford announced the project will deliver new birthing suites, an urgent care centre, a 32-bed inpatient unit, two operating theatres and recovery spaces, and a day medical centre with imaging and pathology services.
In a statement, Ms Pulford said would help ensure standards at the hospital were maintained.
"We are making sure Maryborough Hospital is one of the best in rural and regional Victoria. Maryborough locals deserve first class health services and the jobs they bring - and that's exactly what we're delivering," Ms Pulford said.
The new buildings are to be constructed to the south of the existing hospital. The state government says it will enable the treatment of an additional 3,000 patients through the expanded Urgent Care Centre.
The upgrade was originally promised in 2018, and local member Louise Staley was critical last year of the delay in the development, which will start in late 2022 and continue for two years.
"It is not good enough, and I will continue to fight for this essential project to be delivered," Ms Staley said at the time.
The new facility will be built to the south of the existing site. The state government had previously spent $5.2 million for planning and land purchases for the project in the 2020/21 budget.
"Our world class new Maryborough hospital will give local families the peace of mind that the very best care is just around the corner, when they need it most," health minister Martin Foley said.
"We're building a bigger and safer hospital with capacity to treat an extra 3,000 people through the Urgent Care Centre every year - reducing the need for patients to travel to Bendigo or Melbourne."
The government confirmed the funds will be allocated in the budget, being handed down on Thursday afternoon.
Maryborough District Health Service had been the subject of a Safer Care Victoria review in 2017, after allegations of inadequate natal care were raised by the ABC in a series of articles.
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