Arden hospitals ditched over Metro Tunnel electromagnetic interference

A plan to build hospital campuses at North Melbourne’s Arden development zone has been ditched because of the electromagnetic interference from the rail station in Victoria’s Metro Tunnel project.

The $5 billion project, announced ahead of the 2022 election as “the biggest hospital project in Australia’s history”, would have involved two new medical towers for the Royal Melbourne and Royal Women’s hospitals built near the site of the Metro station, close to the North Melbourne Football Club.

Victorian Premier Jacinta Allan and Sport Minister Steve Dimopoulos at the new Arden station.Credit: Jason South

In a shock budget-day development, it was revealed the hospitals would instead be built in Parkville, with extra floors likely to be added to the existing hospitals where electromagnetic shielding was put in place in the Metro Tunnel.

“The electromagnetic interference is a very substantial problem, and probably in our estimation could not be overcome in any financially responsible way, and may well have compromised patient care,” Treasurer Tim Pallas said.

“It’s largely because of the proximity to the station blocks in that precinct. The government has taken the view that it is probably better to co-locate it in the Parkville precinct, and [it] will give an economy of scale and enable us to provide better care in the long term.”

When asked if the electrical interference issue could have been foreseen when the government announced both projects, Pallas replied: “I’m not always perfect.”

Pallas said further detailed planning would be provided over the next six months of the single site design, but “obviously, it [the buildings] will have to go higher given the constraints and footprint of that site.

“We all have the benefit of hindsight, and the government believed that originally the location at Arden was a great leverage footprint for that precinct, but, as it transpired, the proximity … really just made it impractical. [It would] probably increase cost and perhaps even compromise patient care.”

The testing of Metro trains didn’t begin until 2023.

The government said the approach would enable it to make the most out of both sites: bringing medical care and services together in Parkville, and freeing up Arden for more homes for thousands of Victorians.

“Arden precinct will be a thriving inner-city neighbourhood,” the budget papers state. “It also enables us to prioritise homes at Arden for health workers, as well as making homes more affordable and accessible through initiatives like build to rent.”

No details were provided of how many more homes or the type that would be built as a result of the change.

Under the plans announced in 2022, the first hospital tower at Arden was due to be completed by 2031, with the old hospital buildings in Parkville to be demolished and replaced by 2034.

However, the completion date is now marked as “to be confirmed”, with a note that “the estimated completion date is being re-evaluated due to the project now progressing at a single site in Parkville”.

Pallas said the costings and timeline for completion would be “broadly proximate” with that set out when the new hospital towers were promised in 2022.

The budget papers state that “importantly, the completed project will deliver the same first-class care for patients – but sooner and with less disruption”.

Long-term North Melbourne resident Geoff Leach said news that Arden would no longer host the two hospital towers was unwelcome.

Geoff Leach is disappointed with the vision for Arden.Credit: Justin McManus

Leach said he believed the new biomedical precinct was to be the foundational tenant for the area – known for its heritage buildings – and it could now end up with too much high-rise housing and not enough community facilities.

“The whole Docklands ultra-dense residential development becomes even more the scenario,” he said.

However, the announcement was warmly welcomed by the Royal Women’s and Royal Melbourne hospitals.

In a joint statement, the hospitals said: “We believe this is the right decision for both hospitals and are very supportive of the change for several reasons, including reduced travel for patients, families and clinicians between sites, and improved operating costs and efficiency by operating on one site.

“Our focus now shifts to the further expansion of our Parkville hospitals, ensuring we can continue to be there for our community when it matters most, now and into the future.”

Meanwhile, the government was also spruiking a boost in hospital funding on Tuesday. Money for hospital services will jump by more than $340 million this year.

It highlighted investments into three big city hospital projects, including major upgrades to the Northern Hospital in Epping, which is getting a new emergency department, and the Monash and Austin hospitals.

However, only a fraction of the $1.6 billion required for the three projects will be delivered in the coming year.

An aerial view of Arden Station under construction in January.Credit: Jason South

The Northern Hospital will receive just $48 million in the 2024-2025 financial year for its $812 million development, which is due to be completed by 2030. The Monash Medical Centre will receive $13 million in the coming year for its $535 million emergency department upgrade.

Pallas confirmed that planning for three community hospitals, first promised in 2019 and meant to be completed this year, was under review. Seven other hospitals, including those in Whittlesea, Craigieburn, and Point Cook, are due to be completed between 2024 and 2026.

“We’re doing some further service planning around … Emerald Hill, Eltham and Torquay, basically to determine the optimal care model that should be applied there,” he said.

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