Chief Minister Katy Gallagher on Wednesday released the services delivery plan for the new University of Canberra public hospital.

The new hospital looks set to include 140 overnight inpatient beds and will offer a range of rehabilitation services such as neurological, general, older persons and slow-stream rehabilitation. There will also be outpatient and day services, including for aged care.

Ms Gallagher said the new hospital was an "exciting addition" to the territory's public hospital network and would provide a range of subacute services, which would help reduce stress on existing services at Canberra and Calvary hospitals.

"The service delivery plan also clearly sets out the technical and environmental issues that need to be considered in the design and outlines the design concept, which includes numbers of beds and models of care for different services that will be provided at the UCPH," she said.

She said the new hospital would have many benefits.

"It will attract private health business to Canberra, who will seek to co-locate around these facilities. But for the government, we're going to have access to fantastic students who will be doing the practical part of their courses within the public hospital setting, thereby training them for the workforce of the future," Ms Gallagher said.

University of Canberra vice-chancellor Professor Stephen Parker said the new hospital would be one of the biggest developments in the university's history.

"Students will want to come here because they can have placements, the health service providers will come here because they can have students coming and helping them, and it will be great for patients and great for north Canberra. It is a cliche but it is actually win-win," he said.

Tuesday's budget included funding for construction of the new hospital, but the total estimated investment was not published in the budget papers because of "commerical sensitivities and procurement considerations". Funding of $12.5 million had been provided in previous budgets for "specification, documentation and design of the new hospital".

Ms Gallagher said "now was the time" to press ahead with infrastructure investment, despite estimates recent federal funding cuts would rip about $240 million from health funding to the ACT community in coming years.

"The biggest player in town has abandoned their role, they've said they're not playing, they're withdrawing from the Canberra economy as we know it, from any growth in that and any role around that – that's a clear message from the Prime Minister in his discussions with me, and we shouldn't expect that to change," she said.

"The reality is we're going to need these hospital beds, we're going to need the public transport solutions, we're going to need the economic opportunities that come with City to the Lake. If anything, us walking away from them would send a very strong message about reducing confidence in the city and creating more instability when people are looking for the opposite."

The ACT government's funding for health in Tuesday's budget was largely welcomed by the health sector.

Australian Medical Association ACT president Dr Elizabeth Gallagher said the budget had contained no surprises and was reasonable given the current economic climate. She said it had delivered some small gains for health services and people in the ACT, despite federal funding cuts.

She said more inpatient beds in the Centenary Hospital for Women and Children were desperately needed, but missing from the budget.

The budget included $11.7 million for more staff and services and nurse-led walk in centres at Belconnen Community Health Centre and Tuggeranong Community Health Centre.

Dr Gallagher said while the government had committed funding for the walk in clinic in Belconnen, the AMA had many concerns about the service and its cost.

"The clinic will facilitate fragmented care and the AMA believes that this is not in the interests of patient’s well-being and promotes continuity of care and having a general practitioner," she said.

"It is difficult to criticise the commitment to fund additional health services, although the AMA questions whether the walk-in centre is needed when further investment in general practice is the answer."

Despite these concerns, she said it was pleasing to see funding for extra hospital beds and staff, the bariatric surgery program and services such as BreastScreen and endoscopy procedures.

ACT Medicare Local chair Dr Rashmi Sharma said it was pleasing to see the ACT government focus on health in the budget.