Hospital budget snub a sign Warrnambool will be swallowed up

The Standard has raised increasing concerns about the redevelopment project over the past year, based on a growing body of evidence the original budget can't meet the promised scope.

Calculations based on the state government's internal construction CPI figures suggested the project was already at least $50 million over budget in late 2023.

An anonymous letter in March 2024 from a source close to the project said more than $100 million would need to be added to the budget to deliver everything originally promised.

Several sources have said a critical underground, on-site car park is on the chopping block, and a comparison of the original contract outlines with current promises has revealed the number of new patient beds has already been substantially reduced.

The state government has consistently said the redevelopment will be delivered to the original scope and budget, but has refused to guarantee the underground car park and ignored questions pointing out the reduction in beds.

The Standard understands there has been considerable internal disagreement over the final scope.

The Health Minister is scheduled to announce the builder for the main construction phase of the project in August 2024, at which point the scope will be locked in. That means the recent budget was the final chance to put more money into the project.

The Standard asked the Premier's office whether there was any further opportunity to expand the budget. A spokesperson didn't answer directly, but said the budget "had not changed".

But the Warrnambool snub contrasts with a $54.6 million boost to the Ballarat Base Hospital redevelopment, to deliver 23 maternity beds, five birthing suites and a 12-bed special care nursery, along with a new mental health, alcohol and other drugs hub.

Ballarat is the lead hospital of the amalgamated Grampians Health service, which stretches all the way to Edenhope.

The Standard revealed in April Victoria's regional hospitals were bracing for the state government to announce sweeping amalgamations, merging the state's 76 health services into just 12.

The decision to overlook Warrnambool - reducing the amenities being delivered - while augmenting the Grampians hub in Ballarat suggests Warrnambool will not be a regional hub in the coming mergers.

Instead, Barwon Health in Geelong will take responsibility for all the health services between Geelong and Portland.

South West Coast MP Roma Britnell said "all indications" for the past two years had been pointing towards Barwon Health taking over.

"We saw documents two years ago that implied this was happening," Ms Britnell said.

"We shouldn't call it an amalgamation: this is a takeover."