The Victorian Government has committed $4 million to upgrade Rosebud Hospital, delivering long-awaited improvements to ventilation, safety systems and patient areas at the southern end of the Mornington Peninsula.
However welcome the funding is, many believe Rosebud needs more. Locals have been calling for a complete rebuild to meet the needs of the community — not just patchwork fixes.
Health Minister Mary-Anne Thomas and Tom McIntosh, Member for the Eastern Victoria Region in the Legislative Council, visited the hospital this week to confirm the funding, describing it as an important investment in local healthcare.
Hospital at the Heart of Local Debate
The future of Rosebud Hospital has been a talking point among locals for years, with growing calls for major upgrades to bring the facility up to modern standards.
Residents say the hospital is vital for the southern Peninsula but has struggled to keep pace with population growth and an ageing community.
While the $4 million funding won’t deliver a full rebuild, it’s being seen as a positive step — and one that could carry weight at the next state election, where access to health services is expected to be a key issue for coastal towns including Dromana, Rye and Sorrento.
What’s Being Upgraded
The refurbishment will focus on:
- Installing modern ventilation and infection control systems to improve safety for patients and staff
- Upgrading emergency and patient areas to improve access and comfort
Rosebud Hospital, operated by Peninsula Health, cares for more than 130,000 residents and visitors each year. Services range from emergency care and elective surgery to community mental health, dialysis, chemotherapy and dental programs.
Recent state investments have included:
- $373,000 for a new X-ray system
- $710,000 to relocate and improve community mental health services
- Energy-efficiency works such as solar installation and upgraded air-conditioning systems
Broader Health Network Changes
The funding comes as Peninsula Health prepares to merge with Alfred Health, Kooweerup Regional Health Service, Gippsland Southern Health Service and Bass Coast Health to form a new network called Bayside Health from 1 January 2026.
The merger aims to strengthen links between Rosebud and Frankston hospitals and make services more consistent across the region.
It also follows the $1.1 billion Frankston Hospital redevelopment, which will form part of a larger healthcare corridor across the Mornington Peninsula. Both hospitals already lead the state in ambulance transfer times, with more than 95 per cent of patients moved into emergency departments within 40 minutes.
Minister Labels Funding “A Win for the Peninsula”
Minister Thomas said the investment reflects the government’s commitment to accessible, modern healthcare:
“Every Victorian deserves access to safe, modern healthcare. This $4 million refurbishment will modernise Rosebud Hospital – meaning safer, more comfortable, more accessible facilities for patients and staff.”
Mr McIntosh said the funding would help ensure the hospital continues to meet local needs:
“Rosebud Hospital plays a crucial role for communities across the southern Peninsula. These upgrades will help the hospital continue delivering the care locals rely on.”
Political Response
Nepean MP Sam Groth has again called for a full redevelopment, saying the $4 million upgrade falls far short of what the community needs.
“At the 2022 State Election, I committed a Liberal Government to fund the $340 million Rosebud Hospital redevelopment — a pledge that has still not been matched by Labor,” Mr Groth said.
“Any investment in Rosebud Hospital is welcome, but the amount promised by Labor for upgrades to ventilation and the emergency care area is a little over 1% of the total redevelopment cost.”
“I’ve written to the Health Minister, visited the site many times and raised the issue in Parliament on 22 occasions. Now, after more than a decade in government, a Labor Health Minister has finally visited Rosebud Hospital — but still won’t fund the redevelopment. I’ll keep fighting for the hospital this community deserves.”
Community Reaction
Peninsula Health has welcomed the announcement, saying the funding will help address some of the hospital’s most immediate needs ahead of its integration into Bayside Health.
Community members say it’s an encouraging move but remain hopeful for a larger, long-term redevelopment in the years ahead.
As one local put it:
“It’s a start — but Rosebud deserves a hospital built for the next 50 years, not just the next five.”
