The state government of Victoria, Australia, has announced the start of construction works on the second stage of the Angliss Hospital redevelopment in Melbourne.

The A$112m ($74.4m) project will involve developing a four-storey building designed to meet the growing demand for world-class healthcare in the region.

This facility will feature a 32-bed inpatient unit, four new operating theatres, an upgraded central sterile supply department, and additional outpatient service areas.

The project is being delivered by the Victorian Health Building Authority (VHBA) in collaboration with Eastern Health.

Victoria Health Infrastructure Minister Mary-Anne Thomas began the groundbreaking ceremony following the completion of site preparation and relocation of existing services.

Thomas said: “This massive expansion will deliver more beds, an expanded outpatient unit and four new operating theatres, making sure residents in the outer east region can continue to access the best possible care now and into the future.”

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The demolition of the outdated East Block will enable construction of the new building, which is intended to significantly increase the hospital’s capacity for surgeries and patient services.

The redevelopment is due to be completed by 2026 and aims to expand the hospital’s capabilities in both inpatient and outpatient care.

Its design will emphasise natural lighting and improved working environments for staff, while the redeveloped hospital building will feature an all-electric infrastructure to reduce its environmental impact.

The project is expected to create around 330 construction jobs in the region.

Monbulk district member Daniela De Martino said: “The Angliss Hospital expansion will transform the services offered by Eastern Health, including emergency care, general medical, surgery, maternity, paediatrics and rehabilitation services – ensuring communities in Knox and the Yarra Ranges can get the world-class healthcare they need, closer to home.”

Last month, the Victoria government announced an A$13bn ($8.6bn) investment in healthcare services across the state.