Mr Walker said the winning consortium would have a 25-year contract to operate the new hospital, then would hand it back to the government in as-new condition.

Bendigo Health would operate the hospital but the buildings would be handled by the consortium.

Mr Walker said the operation of specific departments, such as the laundry and kitchen, had not been addressed but would be discussed in contract negotiations next year.

“Some might be part of the PPP and some retained by Bendigo Health. We understand there are sensitivities about people’s jobs.”

Maintenance would be part of the PPP, but Mr Walker did not know whether the consortium wanted responsibility for some existing buildings or whether they would stay with Bendigo Health.

He believed that the new hospital would only increase jobs.

“It’s a massive expansion – I don’t see how people are going to lose jobs.’’

Mr Walker said the new Bendigo Hospital was different to Melbourne hospitals because private companies would look to employ locals.

“They are not going to bring their people 150 kilometres to do the job.’’

Mr Walker said the new hospital was the fifth in Victoria to enter a public-private partnership. The Royal Children’s Hospital and Royal Women’s Hospital had done so.

Expressions of interest for consortiums would be called in May, and tenders would be shortlisted.

Mr Walker urged the community to be involved in the planning and development of the new hospital through a forum under “blogs” at www.newbendigohospital.org.au

“ Our aim is the promote community debate and try to dispel any incorrect information.”