Satellite hospitals suffer $15m blowout as project falls behind schedule

The Palaszczuk government’s Satellite Hospital Program, which was earmarked to take pressure off the struggling health system, is over budget and experiencing difficulty keeping up with an ambitious schedule, new figures show.

A satellite Hospital Program earmarked to take pressure off the state’s struggling health system is over budget and struggling to keep up with an ambitious schedule, new figures reveal.

The Palaszczuk government pledged $265m during the 2020 election to build seven day hospitals at Bribie Island, Ripley, Redlands, Eight Mile Plains, Pine Rivers, Gold Coast and Caboolture.

However, Queensland Health has revised the cost of the program to $280m.

Construction at several of the sites is yet to start, despite the Premier pledging during the election campaign to have the hospitals open by May 2023.

Opposition Health spokeswoman Ros Bates said the Satellite Hospitals were behind schedule and over budget.

“A year ago the Premier promised seven satellite hospitals would be fully operational in 2023 … construction hasn’t even started at many of these sites,” Ms Bates said.

“Now we know they’re over budget and at risk of running late.

“In the middle of a health crisis Queenslanders deserve to know they will get the infrastructure they need no matter how small it is.”

Premier Annastacia Palaszczuk, Health Minister Yvette D’Ath and Environment Minister Meaghan Scanlon turn the sod on the Tugun Satellite Hospital – one of seven being delivered across the south east. Picture: NIGEL HALLETT

A Queensland Health spokesman said the cost increase was as a result of Covid-related shortages of labour and materials

“The Covid-19 pandemic, unforeseen weather events and labour shortages are having a significant impact on the construction sector and supply chains, and project costs are affected as a result,” he said.

“Initial funding of $265m was bolstered with an additional $15m to reflect market-led increases in construction and supply chain costs, assist with concluding cultural heritage management agreements, and finalisation of land acquisitions.”

The spokesman said work on all satellite hospital sites were progressing with “the intent” to open in the second-half of 2023.