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Politics
Fraser Barton

Undeliverable: hospital expansion plan on life support

The cost of Queensland's hospital expansion plan is set to be almost double than first thought. (Cleo Fraser/AAP PHOTOS)

A damning review has found every project in a state's hospital expansion plan is "undeliverable", with costs set to blow out by almost $10 billion.

All 15 projects face delays of up to three years after a "deeply flawed" procurement process by Queensland's former Labor government, the review states.

Originally slated to cost $9.8 billion, the projects are expected to balloon out to more than $17 billion after expansion and new builds were announced without business cases.

The independent review, headed by Klok Advisory managing director Sam Sangster, was tabled on Wednesday, exposing flaws in the former government's hospital expansion program.

Former Queensland premier Steven Miles (file image)
Former premier Steven Miles' government's hospital plan was laudable but rushed, a review says. (Jono Searle/AAP PHOTOS)

"In their current form, they don't fit in those budgets by any measure," Mr Sangster told a Major Contractors Association breakfast in Brisbane on Wednesday.

The former government had made a "laudable response" to increase capital funding for hospitals but rushed the planning process, he said.

"It's pretty clear that the procurement strategy choice of the managing contractor and the risk allocations that were chosen to be put in place were deeply flawed ... and ignored market realities," Mr Sangster said.

He said a number of projects were awarded in September 2024, days before the election caretaker period, requiring a 70 per cent budget increase.

"I am somewhat challenged also that the procurement of those projects was done in about 12 to 14 days - a monumentally short period of time for projects of that scale," Mr Sangster said.

"The projects that have not yet moved into construction, in my view, are undeliverable in their current form."

All 15 hospital projects went to market at the same time, making it incredibly complex for stakeholders and challenging the entire supply chain, he said.

His report also detailed hospitals missing critical maintenance or end-of-life asset upgrades.

In the biggest blowouts, the cost of a new Bundaberg hospital and a Redcliffe hospital expansion are set to cost an extra $1 billion-plus each.

The review found a new Queensland Cancer Centre set to be built in Brisbane had no evidence of planning undertaken and had blown out in price by more than $1 billion, delaying its delivery by at least three years.

Queensland Treasurer David Janetzki (file image)
Treasurer David Janetzki budget surplus plans may take a hit from extra costs for hospitals. (Darren England/AAP PHOTOS)

Queensland's Liberal National government expects to detail time frames for all hospital builds and expansions in the coming months.

Increased costs will have a significant effect on the state budget's bottom line after Treasurer David Janetzki had hoped for a return to surplus in 2026/27 and 2027/28.

In response to the review, the LNP government detailed a 'hospital rescue plan' on Wednesday.

It is set to deliver 2600 extra beds across the state, three new hospitals, 10 expansions, the Queensland Cancer Centre and 46,000 additional workforce members by 2032.

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