The Western Australia Government has announced its plans to end the privatisation of services at Peel Health Campus, and provide $152m for redevelopment and expansion of the hospital.

The new investment comes in addition to the $10m upgrades the McGowan Labor Government is already providing to Peel Health Campus.

The new arrangements will allow as many as 890 Ramsay Health Care staff the opportunity to shift to the public sector, and employed by the South Metropolitan Health Service.

They will also be able to maintain their previous service, paid parental leave and long service leave entitlements.

Peel Health Campus will be a state-run public hospital with co-use of amenities for a private hospital from 2023.

The redevelopment and expansion plan will feature around 63 additional inpatient beds; 12 chemotherapy places; 20 mental health inpatient beds; one additional operating theatre; and at least 15 palliative care hospice beds.

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In addition, more outpatient services, a new build of medical imaging services, and a 10-bed Mental Health Emergency Centre will be included.

The day procedure unit will be expanded and reconfigured, along with the emergency department.

In the next 18 months, around $2m will be used for developing the business case and on procurement preparation for the expansion.

Ramsay Health Care, under its service agreement with the South Metropolitan Health Service for the state government, will continue to manage Peel Health Campus.

The service agreement will expire on 13 August 2023.

Western Australia Premier Mark McGowan said: “Peel-Murray locals will benefit from what will be the biggest upgrade of the Peel Health Campus in its history. Only under my Labor Government will the significant $152 million redevelopment and expansion be delivered, creating a pipeline of work through major upgrades. We are committed to delivering quality health care across our State, no matter where you live, ensuring patients and staff benefit from improved and enhanced facilities, which leads to better patient care and outcomes.

“Earlier this year we were able to bring back some Fiona Stanley Hospital services to public hands, and now we can put an end to privatised services at Peel Health Campus. We’ve sought to return public control of the privatised services, where it’s responsible to do so, and continue to put patients first, ensuring they have choice and access to health care close to home. The significant investment to redevelop and expand the hospital, and the plan to bring hospital services in-house, is only possible because of our efforts to get the Budget under control and our continued responsible financial management.”