Eight-bed outback hospital costs $67m, three times original budget

WA's Health Minister Meredith Hammat has defended the cost of a new eight-bed outback hospital, which has reached practical completion at a cost of $67.6 million, or more than three times the original budget from 2015. 

Construction of the new Laverton Hospital began last year to replace the aging facility, which was built in 1973 for the northern Goldfields community, about 950 kilometres north-east of Perth. 

WA Premier Roger Cook and Ms Hammat flew into Laverton on Sunday to announce practical completion of the new hospital, which includes a 24-hour, telehealth-equipped emergency department. 

The hospital also has flexible care beds, specialist facilities for visiting clinicians as well as outpatient services for community health, mental health, and space for an onsite private GP clinic. 

When pressed on the cost of the build, Ms Hammat said it reflected the reality of delivering major infrastructure in remote locations.  

"What we see with all our health infrastructure projects, particularly in regional Western Australia, is that it's always challenging to deliver them," she said.   

"But we are absolutely committed to deliver the health services and the health infrastructure that people need. 

"A look at the old Laverton Hospital confirms the reality that this facility is incredibly needed for the community, and we've taken the opportunity to co-locate services like community health, child health, as well as a GP service." 

Long road to new hospital

The Shire of Laverton has been lobbying for a hospital redevelopment for more than a decade.

The former Liberal-National government promised a $19.5 million redevelopment of Laverton Hospital in 2015, before funding was cut by WA Labor when it came to power in 2017.

Mr Cook, who was minister for health in 2017, said the new Laverton Hospital would open its doors to patients from Wednesday.  

"I'm a previous health minister and this project has been on the books for a long time," he said. 

"It's with a sense of deep relief but great pride that we're now in a position to welcome patients here."

After years of delays, the state government announced in February 2025, on the eve of the March election that year, that ADCO Constructions had won the tender to build the new hospital at a cost of $37.5 million.

Minister for Health Infrastructure John Carey confirmed in October last year those costs had blown out to $63.6 million. 

The final cost of $67.6 million includes a federal government contribution of $16.8 million towards the project.  

Hospital vital for Outback Way

Shire of Laverton president Pat Hill said the new hospital would be vital in emergencies due to the projected increase in traffic once the Outback Way was sealed.   

The Outback Way stretches 2,719km through central Australia, from Laverton in Western Australia's northern Goldfields to Winton in Queensland, and it is hoped the final stretch can be sealed by 2032.  

"It's been on the cards for over 15 years … I know they've had challenges but it's completed and it's a beautiful, first class facility," he said.    

"With the development of the Outback Way and more people coming through these isolated, remote communities, and also the mining interests around Laverton, we've got over 7,500 people working fly-in, fly-out, so it's great to see governments working to put infrastructure into these remote areas."

Mr Hill has been chairman of the Outback Highway Development Commission since 1997 and is set to attend its annual general meeting in Alice Springs on Tuesday.  

Kalgoorlie MLA Ali Kent echoed Mr Hill's sentiments on the hospital's importance due to the Outback Way.   

"Laverton is in the middle of the desert, it's a long way from the Perth CBD and to have a hospital of this standard delivered here … it's been a difficult journey because we were putting tenders out and couldn't get builders that could do it," she said.  

"When the Outback Way goes through, this hospital is going to become even more important."