Victoria expands hospital pipeline with Dandenong upgrade and new Melton Facility

Victoria’s hospital network is set for a major boost, with the state government outlining plans to expand Dandenong Hospital and progress construction on a new facility in Melbourne’s west.

A $305 million redevelopment at Dandenong Hospital will add nine operating theatres, a new 16 bed intensive care unit and upgraded day surgery admissions. The hospital, already among the busiest in the state, is expected to see increased capacity once the works are complete, with a focus on improving access to surgical care closer to home.

Planning for the redevelopment is still under way, with designs being finalised in consultation with clinicians. Construction is expected to begin later this year, and the hospital will remain operational throughout the process. The Victorian Health Building Authority will oversee the project alongside Monash Health, with an emphasis on limiting disruption to patient services.

The upgrade forms part of a broader infrastructure programme that includes projects at the Northern Hospital, Austin Hospital and Monash Medical Centre. State officials say these investments are intended to respond to population growth and rising demand across the public health system.

At the same time, work has begun on the new Melton Hospital, a separate $900 million project aimed at supporting Melbourne’s fast growing western suburbs. Early construction is already visible, with concrete slabs poured and several tower cranes in place.

Once complete, the Melton facility is expected to treat around 130,000 patients each year. Plans include 274 beds, a 24 hour emergency department, intensive care, maternity and neonatal services, as well as mental health and radiology support. The emergency department alone is designed to handle more than 60,000 cases annually.

The hospital will also include teaching and research spaces, reflecting its role in training healthcare workers alongside delivering services. It is being developed on a large site in Ferris Road and is scheduled for completion in 2029.

Officials have highlighted the environmental aspect of the project, with the Melton Hospital set to operate as an all electric facility powered by carbon neutral energy from its opening.

Both projects are expected to generate employment, with construction activity already supporting jobs across the sector. The Melton site alone has recorded hundreds of thousands of work hours to date.

The announcements come against a backdrop of ongoing debate over healthcare funding and service delivery. The government has framed the projects as part of a long term effort to expand capacity and improve access, particularly in growth areas. Critics, however, have questioned whether investment levels and timelines will be enough to meet demand across the system.

For residents in Melbourne’s south east and west, the developments are likely to have a direct impact on how and where care is accessed. Expanding existing facilities and building new ones closer to growing communities may reduce travel times and ease pressure on other hospitals, though much will depend on staffing, resources and how services are managed once the projects are complete.