A new "hospital in the home" program for children needing care will be funded in the upcoming ACT budget.
The program is part of a nearly $16 million package to fund paediatric services at Canberra Hospital.
Health Minister Rachel Stephen-Smith said the money would be spent on the hospital at home program, more paediatric nurses and training to upskill paediatric and emergency department staff for the new critical services building at the hospital.
The government will also establish a service to deliver age-appropriate gender care for children aged 15 and above.
Ms Stephen-Smith said the hospital at home program would allow children to leave hospital sooner.
"That's fantastic for kids who can be in their home environment, getting the food from their families, hanging out with their brothers and sisters if they have them," she said.
"But it's also great for parents and carers. We know that when you have a sick child in hospital that's a big strain on a family, particularly if there are other children at home as well.
"Being able to send those children home earlier but still getting that acute expert care that they need is going to be a really good outcome for the children themselves and for their families."
Canberra Health Services acting executive director of women's youth and children Sue Pilkington said the model of care and the program would be developed over the coming months.
"What it means in practice is really exploring the model of care for those children that would benefit from being at home that don't need to be in the hospital environment," she said.
"That could be a range of things and that's what we'll be developing over the coming months so we probably don't want to give you specifics yet."
The government is making the investment as an expert panel is overseeing proposed changes to Canberra's paediatrics care. A review into paediatrics at Canberra Health services last year found staff felt there were "unnecessary risks for unwell children".
The head of the panel, Professor Michael Brydon, told The Canberra Times last year staff in Canberra Health Services had expressed optimism but there was still a long way to go before everybody was happy.
Ms Stephen-Smith also announced there would be $14.3 million allocated to Calvary Public Hospital Bruce, or the North Canberra Hospital as it will be known when the government takes control.
There will also be $6.75 million to increase outpatient appointments and $6.7 million towards boosting elective surgery capacity.
