Premier David Crisafulli speaks on status of Townsville University Hospital expansion plan

The Townsville Hospital and Health Service have homework to complete after the Sangster review revealed major changes need to be made in an expansion project.

The Townsville Hospital and Health Service have a “little bit of homework” to do when it comes to expanding the hospital.

THHS board chairman Tony Mooney said they would get to work immediately on a revised plan for the expansion at Townsville University Hospital.

This comes after the Sangster review revealed a cost blowout of $550m on the proposed project and that it would now be delivered by 2029 at the earliest.

Premier David Crisafulli said the report found that the former Labor government “cobbled together” a plan that was “undeliverable”.

“What is in the recommendations is that we immediately go to procurement on the multi-deck car park. That is a very important addition,” Mr Mooney said.

“It will come down to the procurement and the opportunity for local contractors to be able to bid on that. That is what I think was missing first time around in terms of the overall expansion.”

Mr Mooney said the board and the hospital executives were going to get the master planning together and are expecting that to be done “within the calendar year” but said the project would be pushed back.

“I’m not going to tell you a porky here, its going to take four years to build that project,” he said.

Visiting the hospital on Thursday Mr Crisafulli said the project had blown out by more than half a billion dollars and was two years overdue.

“That independent review exposed that. What we are announcing today is a proper plan to save that, to rescue that, to deliver that,” he said.

Mr Crisafulli said the government was committed to delivering an additional 173 news beds at the hospital and that early works on the TUH would continue on site, with redesign works starting soon.

Townsville Hospital and Health Services CEO Kieran Keyes and Chair Tony Mooney joined Premier David Crisafulli to announce funding to expand Townsville University Hospital. Picture: Holly Fishlock

“Then it’s up to the local board to make sure that those grassroots contractors can get in and do the work.” he said.

The report stated that that there would be no way the upgrades could be completed to the required level with the funding that was initially allocated.

Initially funded at $530m the project is now costed at more than $1bn, with the plan now for the Townsville University Hospital to go back to the drawing board.

In December 2024, the state government ended its contract with Besix Watpac, resulting in the sacking of some workers in Townsville.

Premier David Crisafulli visited Townsville to announce funding to expand Townsville University Hospital. Picture: Holly Fishlock

With the report recommending that clinical items be removed from the scope to bring down the costs of the project, chief executive Kieran Keyes said the message was clear that if they want the right scope delivered there would have to be a “re-go” at the planning.

“There’s challenges to think about how we bring this on in stages, and whether that is possible I can’t tell you,” he said.

“But we are committed to making sure we get that plan and explore what’s expected from us on the report.”

Mr Keyes said stage two would be re-tendered again, after it was not awarded after being announced back in December 2024.

“Simply re-tendering what was there isn’t going to deliver the sort of savings that are needed,” he said.

Townsville University Hospital redevelopment mock-up.

“We’ve been challenged to go back to the planning forum and as the board chair (Mr Mooney) said they were quite keen to get that one done as quick as possible.”

Author and infrastructure specialist Sam Sangster’s review of the former Labor government’s $9.8bn health infrastructure plan has revealed it was severely underfunded and labelled it “undeliverable”.

Mr Crisafulli said responsibilities in regards to planning would be placed back with the board.

“I love the model of health and hospital boards, because you get local people like Tony [Mooney] who live and breathe their communities, but you’ve got to give them the responsibility, you’ve got to put them back in charge,” he said.

“That’s the model that we’re taking. The money will flow and it will flow from our first budget.”

Thuringowa MP Natalie Marr called out the former Labor government and said the project was “never going to be delivered” under them.

Originally published as Premier David Crisafulli speaks on status of Townsville University Hospital expansion plan