The state budget will include close to $95 million for a long-awaited redevelopment of the Maryborough hospital.
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The government confirmed the funds will be allocated in the budget, being handed down on Thursday afternoon.
The announcement fulfils a promise Labor made ahead of the 2018 state election.
As part of the project, a new facility will be built to the south of the existing site.
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"Our world class new Maryborough hospital will give local families the peace of mind that the very best care is just around the corner, when they need it most," health minister Martin Foley said.
"We're building a bigger and safer hospital with capacity to treat an extra 3,000 people through the Urgent Care Centre every year - reducing the need for patients to travel to Bendigo or Melbourne."
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