Labor has pledged to build a new $220 million hospital in the Adelaide Hills if the party wins this month's state election.
The party says the new facility proposed for Mount Barker would triple to 102 the number of beds available in the existing hospital.
It would retain all current services and add a 12-bed mental health unit, rehabilitation beds for longer-term patients, and increased obstetric, medical, and surgical beds.
The facility would also have an on-site pharmacy, pathology and radiology services, upgraded outpatient clinics, and new operating theatres.
Opposition Leader Peter Malinauskas said the growing Mount Barker community needed health services that could meet current and future demand.
"Local people will be able to be treated more often at their own hospital, and it will relieve pressure on metro hospitals," he said.
The Mount Barker region is home to about 37,000 people and is expected to grow to more than 56,000 within 15 years.
South Australians go to the polls on March 19.