Eurobodalla Regional Hospital $70m cost blowout

The state government confirmed this week the revised projected cost of the hospital to be built at Moruya was now $330million, up from the previously stated $260m.

The news came ahead of next week's state budget, with Gilmore federal election hopeful Andrew Constance taking to social media critical of NSW Labor over its budget figures and promises for the regional hospital.

"Since the change in government there have been reviews and delays," Mr Constance said.

"What we have now is ... a $70m cost blowout before construction has even started; No clarity on whether an actual construction contract has been signed; [and] a hospital that will not be delivered in 2025 as promised by Labor repeatedly last year."

In response to questions from ACM, NSW Minister for Regional Health Ryan Park said the additional $70million was due to cost escalations across the construction sector.

"The reality is, the previous government didn't set aside adequate funding for many of these projects given cost escalation across the construction sector," Minister Park said.

"This will not impact on other health budget measures.

"We're making these investments so that the hospital projects that have been promised can be delivered and stay on-track."

Mr Park also stated construction of the Eurobodalla Regional Hospital would begin in the coming weeks.

A spokesman for Mr Park also responded to follow-up ACM questions to confirm the government remained committed to opening the hospital as a Level 4 facility.

"Without this additional funding, services like the emergency department and the intensive care unit could have been impacted - but not anymore," the spokesman said.

Mr Park said the government's investment "means the biggest emergency department for the entire Eurobodalla Shire" - larger than the current Moruya and Batemans Bay Hospitals' EDs combined.

"[Also] the first ICU for the area, increased capacity for chemo and renal dialysis and more medical imaging including a new MRI," he added.

Batemans Bay Hospital and Moruya Hospital will continue to operate and provide healthcare services for the community while the new regional hospital and $20million Batemans Bay Community Health facility are being built.