The government says it will add more beds and services to the planned Canberra Hospital expansion project, called SPIRE, which was a key election promise in the lead up the to 2016 election.
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Health Minister Meegan Fitzharris said the decision came as a result of talks with clinicians.
The plan offers 12 extra intensive care beds and two more operating theatres than previously pledged.
The Opposition's health spokeswoman Vicki Dunne said the expansion showed the government's 2016 announcement was "devised on the back of a beer coaster".
"It was uncosted and unsubstantiated," she said.
It comes after concerns about the hospital's capacity and its ability to deal with increasing pressures in the coming years.
The government has not revealed the budgeted cost of the project, but says it expects it to be equivalent to, or greater than, the original $500 million pledge.
Chief Minister Andrew Barr said it was the biggest infrastructure announcement the government would make in the lead-up to next week's budget.
The Surgical Procedures, Interventional Radiology and Emergency - known as SPIRE - centre was a key promise before the 2016 territory election, when the government said it would be delivered by 2022.
Construction is yet to begin and the government has delayed the expected completion to 2023-24.
Last year, it was forced to move the original planned site due to budgetary and logistical concerns.
Ms Fitzharris said the expanded SPIRE centre plan would include 12 additional intensive care beds than previously announced.
The new plan would deliver 22 new operating theatres - up on the 20 originally promised.
It would include four new paediatric intensive care beds and a family zone to provide support services for families who have children in the unit.
Mr Barr said SPIRE was part of the government's plan to future-proof Canberra's healthcare system to meet ongoing growth in demand for public healthcare.
"The SPIRE centre was one of our most significant commitments at the 2016 election. We are getting on with delivering it because we understand how important it is to be building now to meet Canberra's healthcare needs into the future," he said.
Ms Fitzharris said the expanded SPIRE centre, announced on Tuesday, would be bigger and better than first planned.
"ACT Health and [Canberra Health Services] have engaged with clinicians extensively and we've listened," she said.
"Many of the key aspects of SPIRE have been boosted, with this state-of-the-art critical care and surgical facility able to meet the acute healthcare needs of our growing and ageing community well into the future."
Mrs Dunne criticised the government for not releasing the budget of the project and the delay in its expected completion.
"This has been their biggest pre-budget announcement [every year] since 2016," she said.
"They went to the 2016 election saying 'we have plan for the hospital'.
"They didn't have a plan for the hospital and the work that has been done since then - moving the location, the blow out in the time frame - shows they were not serious when they made a commitment to the people of the ACT at the 2016 election."
Canberra Health Services chief executive officer Bernadette McDonald said she was excited about the expansion.
"The expanded SPIRE project will be fantastic for the ACT community as well as for Canberra Health Services staff," she said.
"The additional theatres, intensive care beds and ED cubicles will help future-proof us for demand that is to come.
"While we have all these services now, SPIRE builds on our existing capacity through a project that will be custom-designed on the advice of our clinicians to improve safety, patient experience and the working environment for our staff."
Preparatory site works for SPIRE will get underway with decanting and site works starting this year.
The Australian National University also announced it would develop a new state of the art facility in conjunction with the SPIRE centre.
It would boost the teaching, training and research presence at the Canberra Hospital.
Australian Medical Association ACT president Antonio Di Dio applauded the expansion for focussing on areas of need.
He also welcomed the Federal Government's pre-election pledge to provide money for more intensive care beds in the short to medium term.