Victoria and NSW have struck a deal on a $558 million border hospital redevelopment as the two state governments join forces ahead of state elections.
Victorian Premier Daniel Andrews and NSW counterpart Dominic Perrottet made the announcement at Albury Base Hospital on Thursday.
NSW and Victoria will each invest $225 million into rebuilding the hospital, adding to the $108 million already coming from the NSW and federal governments.
The redevelopment includes a new clinical services facility on the existing Albury campus, a helipad with direct access to ICU and emergency departments, operating theatres and a 32-bed mental health ward.
Albury-Wodonga Health operates on a shared funding model between the Victorian and NSW governments under the control of the southern state's health department.
A master plan for a new hospital to serve the twin cities was due to be completed by November last year but hasn't been released publicly.
"The people of Albury-Wodonga have been calling for new, state-of-the-art facilities and this is what we will deliver," Mr Perrottet said.
"The NSW and Victorian governments are also in negotiations to deliver a new and improved health service management agreement, setting us on a path towards establishing Albury-Wodonga as a major regional health service."
The population in and around Albury Wodonga is expected to grow 30 per cent by 2036.
"As the border region continues to grow, we'll make sure healthcare workers and local communities on both sides of the Murray can have the facilities they need," Mr Andrews said.
In June, the Victorian coalition pledged $300 million to rebuild the hospital if it won the November state election.
