For this purpose, the government will collaborate with the South Australian Government.
The “once-in-a-generation” project seeks to add more beds to the facility thus cutting patients’ waiting time for emergency department and other services.
The upgrade will add 160 beds for the south of Adelaide that includes 136 more beds for Flinders Medical Centre and 24 for Repat.
Majority of the beds will be provided for single rooms to ensure a patient’s privacy and control infection.
While two-thirds of the beds will be overnight beds, the rest will serve as same day beds.
The development will be carried out in phases to handle challenges related to site infrastructure, and the upgrade is likely to be completed by 2028.
Australian Minister for Health and Aged Care Mark Butler said: “This will upgrade and replace ageing infrastructure and reduce pressure on the overall hospital network.
“Most importantly it will give people in southern Adelaide the medical care they deserve.”
The project will also upgrade wards, increase the capacity of intensive care unit, construct more operating theatres, enhance capacity for emergency and elective surgery, and expand medical imaging services.
A new eye surgery clinic as well as a 24-bed unit for elderly at Repat are also part of the plan.
The project will also focus on expansion of Margaret Tobin Centre for mental health.
South Australia Premier Peter Malinauskas said: “This is the partnership we need to reduce ramping and ensure Flinders is well-equipped to deliver high quality care. And it will dramatically reduce pressure on the overall hospital network.
“This represents the first major stage of a generational investment needed to replace the ageing infrastructure at Flinders Medical Centre.”