Brand new six-storey hospital to replace Peel Health Campus

The State Government's announcement of a new six-storey hospital in Mandurah has been welcomed by the community.

It comes five years after Labor committed to a $152 million redevelopment of Peel Health Campus which never came to fruition.

Following a review by the Office of Major Infrastructure Delivery, the Cook government have instead decided to build a brand new hospital next to the existing facility, one of three major hospital projects announced on Thursday.

"It will allow the new hospital to be built faster, with less disruption to hospital services, and will enable the vacated facilities to be potentially transformed into additional health services in the future, such as aged care accommodation, at the end of the build," the State Government statement read.

The new hospital is set to feature a 39-bay emergency department, a dedicated mental health emergency centre, new facilities for cancer treatment, a dedicated mental health inpatient unit, a dedicated palliative care unit, additional inpatient beds, including a new high dependency unit, a new operating theatre complex and expanded public outpatient services.

Mandurah MLA Rhys Williams said it's great news for people living in the Peel region.

"This isn't just about a better building, it's about a significant increase in health services for our community and about future-proofing our health system," Mr Williams said.

"Since coming to parliament in March, I've been listening to hundreds of you share your concerns about our health system here in Mandurah, so I'm really grateful to the government for backing Mandurah people in and investing in Mandurah's health system." 

Federal Member for Canning Andrew Hastie said the announcement comes after years of pressure.

"It’s the right call—but it wasn’t inspired by visionary leadership. It was driven by fear and political pressure," Hastie said.

"For years, I’ve fought for better health services in Peel. I’ve raised it in Federal Parliament 16 times, challenged Labor Ministers, and stood shoulder to shoulder with locals who’ve had to fight for better local healthcare.  

"This announcement is a win for the Peel community, but it comes after five years of delay and growing frustration across our region.

"I welcome the announcement that a new hospital will be built next to the outdated and overstretched Peel Health Campus, with construction starting in 2026. It’ll include more beds, a bigger emergency department, mental health services, cancer treatment, and palliative care."

Construction will begin in 2026 with completion set for 2029.