A new plan of constructing a new children's hospital in Melbourne, is awaiting the State Government's approval. The plan is initiated by the Southern Health network.

It will be a 200 bed hospital with pediatric theatres, a cancer centre and a bigger outpatient service. It is proposed to be built at the Monash Medical Centre site in Clayton. The project will cost about $220 million, though no decisions have been taken so far.

The Director of Monash Children's, Professor Nick Freezer opines that a new hospital is required by the Melbourne's south-east, so as to keep up with the increasing demand.

He said, "We're increasing at about 10 percent per annum and at the moment we just can't continue to provide the services with the infrastructure we have in place".

The Government had started planning money for this project four years ago, says the Health Minister Daniel Andrews.

The Victorian Government says that Melbourne's Royal Children's Hospital will not be negotiated by a proposed expansion of pediatric services at the Monash Medical Centre.