The Minns government will spend $400 million on a "maintenance blitz" for the state's struggling public hospitals, including in the Hunter.
The funding will improve internal building conditions, including heating, ventilation and air-conditioning (HVAC) systems, to reduce the risk of mould.
The funding follows a Newcastle Herald series on the mould and maintenance scandal at the Calvary Mater hospital.
This led to a parliamentary inquiry put forward by the Coalition and backed by the Greens, which Labor opposed.
Shadow Health Minister Sarah Mitchell had an order for papers approved in the NSW Legislative Council in February.
This compelled NSW Health to release documents relating to the maintenance and cleanliness of hospitals in NSW.
Ms Mitchell, of the Coalition, sought "all documents relating to mould, water ingress or pest infestation issues identified in hospital buildings".
The documents revealed mould and maintenance problems at numerous hospitals across the state, including the Mater in Newcastle.
They also disclosed "significant mould growth" at John Hunter Children's Hospital, with the potential to affect "vulnerable children".
The documents showed at least two patients died at the Royal Prince Alfred Hospital due to an outbreak of Aspergillus, the same mould that forced the closure of multiple wards in the Mater.
The Newcastle Herald revealed that at least 16 invasive fungal infections occurred at the Mater from 2019 to 2024. These infections have a high mortality rate.
Additionally, 120 families have registered for a class action into alleged mould-related deaths at the Mater, most of whom lost loved ones to pneumonia.
The Minns government said the $400 million in funding would be part of the 2026-27 NSW budget.
It will fund work on building integrity, mechanical systems and engineering services, including flawed HVAC systems like the one at the Mater.
A waterproofing program will occur to "minimise moisture-related risks, including roof or facade replacements", like the cladding issue that caused water leaks at the Mater.
It will also include upgrades to fire safety, hospital lifts and medical equipment including MRI and CT scanners.
Premier Chris Minns said "we're building new hospitals across NSW, but we're also making sure existing hospitals have the upgrades they need".
Minister for Health Ryan Park "NSW families have seen and felt the impact of the former Liberal government's neglect".
"But we are cleaning up their mess to better support the world-class healthcare our community relies on every day," Mr Park said.
Ms Mitchell, of the Coalition, said the "$400 million investment to upgrade hospitals is welcome, but long overdue".
"The NSW public health system is literally falling apart on Ryan Park's watch," she said.
"Patients go to hospital for treatment and care, not to be put in further danger due to toxic mould, or conditions caused by bird droppings and dead pigeons in roof cavities and air-conditioning units."
She said the Coalition had "forced the Minns Labor government to conduct a maintenance review".
"Quite frankly, these failings and issues should've been dealt with already."
