Health Infrastructure Minister John Carey has defended a $25 million cost blowout for a mental health expansion at Fremantle Hospital, blaming increasing construction costs and the discovery of asbestos at the site for the increased expense.
When construction on the expansion kicked off in January 2024, the government said the redevelopment was set to cost $63 million.
At the announcement of the new 24/7 mental health crisis centre on Tuesday, the government said the project would now cost more than $88 million.
“The reality is, as with all projects, we are facing cost escalations,” Carey said.
“This has been a challenging project in terms of the redevelopment, including asbestos contamination, which was not first accounted for, so that’s why you’ve seen cost escalations.
“There’s both been a deliberate decision from when we originally announced this to significantly expand the capacity, and I don’t think anyone will criticise us for doubling the bed capacity, and including a 24/7 mental health crisis centre.
“But this is the reality in this construction market, and I’ve talked about this a lot. We do face cost pressures, and then, of course, on top of that, you encounter asbestos in a building, and I can tell you it’s no easy run.”
The new development includes additional inpatient capacity, specialist older adult services, the mental health crisis centre, and the introduction of neurostimulation therapy.
It also includes a new neurobehavioural unit for older adults, 10 open beds, and a 20-bed secure mental health ward, contributing to 40 additional beds across the service.
Carey said the number of beds had lifted the cost of the development, but a 2024 media release from the Department of Health had already noted the $65 million would include increasing the number of inpatient beds at Fremantle Hospital from 64 up to 104.
Health Minister Meredith Hammat said the new facility would be a place where people with acute mental health needs can access the support they need.
“It will be a safe and supportive place for people with mental health crises and their families and carers to be able to access the care that they need without needing to attend a traditional emergency department,” she said.
“Now that’s good news for those people where they’ll be able to receive more appropriate care for their condition.
“It’s also good news for our emergency departments as we alleviate the pressure on those across the south metropolitan area.”
