Work starts on main Mount Barker Hospital building as cost rises by $45m to $365.8m

Construction on the main building of the new Mount Barker Hospital has started – but the cost has risen by nearly $46m.

Work on the long-awaited Mount Barker Hospital has hit a new milestone, with construction starting on its key building this week.

The centrepiece of the $365.8m health facility – the clinical services building – will allow Hills residents to access closer and improved services.

But the cost of the hospital has now surged by a further $45m.

The project was first estimated to cost $220m but the 2023-24 budget added a further $100m to push cost to $320.8m. It was revealed in last month’s state budget that the price tag would now climb to $365.8m.

Health Minister Chris Picton said the additional investment was required “because of the uplift in construction, trade and material costs – happening here and around the world”.

“We are committed to fully funding the new Mount Barker Hospital so we don’t need to compromise on the better health services needed for the Adelaide Hills community,” he said.

The state government expects the all-electric facility to also help ease pressure on major metropolitan hospitals and reduce the state’s carbon emissions.

An artist impression of the new Mount Barker Hospital. Picture: supplied

Mr Picton hailed construction starting as a “big step forward” for the new hospital.

“The clinical services building will deliver a new hospital that interfaces with the existing emergency department, so it’s great to see work is now underway,” he said.

“The Adelaide Hills is one of the fastest-growing communities in our state and this investment will help provide locals the healthcare they need, close to home, for years to come.”

An artist impression of the new Mount Barker Hospital. Picture: supplied

The new hospital will triple the inpatient capacity to cater for the growing Adelaide Hills community, with the number of beds growing from 34 to 102.

It will also feature contemporary operating theatres and dedicated Aboriginal health and Allied health facilities.

Around 43,000 people are estimated to live in the Mount Barker region, which is expected to grow to 55,000 people by 2036.

Kavel MP Dan Cregan said the community has campaigned “for many years” for this project.

“It’s a delight to see it taking shape,” he said.

An artist impression of the new Mount Barker Hospital. Picture: supplied

Early works onsite have been finished and construction is expected to start soon on the hospital’s multi-deck carpark, which will increase capacity from 431 to 654 spaces.

Barossa Hills Fleurieu Local Health Network chief executive Bronwyn Masters said they were continuing to work behind the scenes with staff and consumers “to provide safe access to care during construction as we also prepare for the opening of the new hospital”.

“The internal designs are about to be released for consultation, which will provide everyone an opportunity to provide feedback and input on the designs,” she said.

The facility is expected to open by the end of 2027.

Meanwhile, the number doctors in training in regional parts of the state has surged with 196 second, third and fourth-year registrars are undertaking training with SA Health and private employers this year compared with 123 in 2023.

Originally published as Work starts on main Mount Barker Hospital building as cost rises by $45m to $365.8m