Panels on the facade of Canberra's Centenary Hospital must be replaced after they were found to contain the same combustible polyethylene core as those on Grenfell Tower.
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The women's and children's hospital is the first found to have the deadly cladding, after the Grenfell fire sparked an ACT government audit of territory-owned buildings.
More than 80 people died in the 24-storey block in West London on June 14, after fire broke out in a fridge-freezer on the fourth floor.
The fire is believed to have rapidly spread because of the exterior cladding, made of aluminum and polyethylene.
The ACT health directorate was among the first government department to finish the audit and only one of its buildings had the panels.
In a ministerial statement to the ACT Legislative Assembly on Thursday, health minister Meegan Fitzharris will tell MLAs the panels complied with all relevant codes when the final Certificate of Occupancy and Use was issued.
Not all of the building's panels contain the combustible core however, meaning only some must be replaced.
Planning is already under way to remove the panels, but cost and a timeline are yet to be determined.
The ACT Emergency Services Agency visited the hospital this month and said they were satisfied with its fire suppression system and emergency procedures.
However the hospital will boost its fire preparedness regardless.
Centenary Hospital opened in 2012 but was quickly mired in safety concerns.
Then Opposition health spokesman Jeremy Hanson said it appeared the Centenary Hospital had opened before it was ready.
ACT Health recently came under fire for its handling of a switchboard fire earlier this year, which forced the evacuation of 60 people and the cancellation of surgeries.
It was later revealed the government delayed replacing the ageing switchboard for at least two years, signing a contract for works days after the fire.
A 2016 audit of ACT Health assets found more than 100 "high risks" in the directorate's infrastructure, including an "extreme risk" linked to the switchboard.
Planning minister Mick Gentleman will also update the Assembly on the taskforce established in the wake of the Grenfell fire.
The cladding is not common in the ACT residential sector and ACT Education and Access Canberra are also reviewing their buildings.
The ACT was the first Australian jurisdiction to raise concerns about the combustibility of cladding in 2009, and in the eight years since has checked plans for all new ACT buildings with a floor area greater than 500 square metres to ensure it was compliant.
