The ACT government will begin design work on three new buildings at Canberra Hospital as part of its 20-year masterplan for the Woden site.
There will be $52 million spent over the next four years to progress the masterplan, which was unveiled last year.
The government has committed an extra $160 million to health infrastructure in the 2022-23 budget, with more than $820 million to be spent in the five years to 2026-27.
This includes money for the design and fit-out of a 64-bed in-patient unit, design work for a new pathology building and design and costing for a new inpatient building.
But while further funding has been allocated to works on the existing hospital the government has not committed extra towards a new northside hospital despite a higher-than-expected growth in the territory's population.
The 2021 census revealed Canberra's population was larger than expected, up 14.4 per cent to 454,000 people since the last count in 2016 and well above the estimated population of 432,000.
There was $10 million allocated for work on the northside hospital in last year's budget. Budget papers said planning and design work was underway.
"The government allocated $10 million in the 2021-22 budget to continue planning and scoping works and is currently engaging with the community and other stakeholders to ensure the facility provides the right mix of clinical services, with a modern, sustainable design," budget papers said.
Chief Minister Andrew Barr said that while the territory's population was higher than expected, the budget had already planned for the demand experienced in health settings in previous budgets.
Budget papers say there will be a "step-down approach" to the COVID-19 response but that management and reporting of the virus would continue.
The budget assumed there would be further COVID-19 waves in Australia but these waves won't affect economic outcomes.
Mr Barr said the ACT retained the capacity to respond to the pandemic should the risk be higher than forecast.
"It is difficult to predict where the pandemic goes next but in looking at the data sets it is clear that the vaccines are working and the rate of hospitalisation has been decreasing as each successive COVID wave has arrived in Australia [and] Canberra," he said.
"What I anticipate now is a period between waves and potential new variants, we will need to give through to what risks could emerge over our summer."
Budget papers confirmed further health investments, including $16.4 million to increase allied health staff across Canberra Hospital campus. The public health workforce is set to grow by 170 staff over the next two years.
The government will also spend nearly $30 million on increasing the number of elective surgeries in the territory. Private hospitals are expected to take on some surgeries as part of this investment.
Mr Barr said the territory would continue to work closely with the federal government and state governments on a health policy to stop bed block and keep people out of hospitals.
"The most significant piece of reform that is important from a service delivery perspective but also a budgetary perspective is the Commonwealth and the states and territories being able to work together on health policy and particularly preventative health measures that will keep people out of hospitals," he said.
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