Construction has commenced on the new Bankstown Hospital, with crews beginning to dismantle and demolish existing buildings on the Chapel Road site of what is the largest single capital investment in a public hospital in New South Wales history.
The $2 billion project will deliver a new 14-storey hospital building in the Bankstown city centre, alongside a 10-storey car park, with more beds and treatment spaces and expanded health services for one of Sydney's fastest-growing regions.
Demolition and site remediation are expected to continue throughout 2026, with main construction works scheduled to begin in 2027 once a head builder is appointed. Hindmarsh was appointed earlier this year to carry out early works on the site.
The state government estimates the project will support about 3,600 direct jobs over its life, with thousands more indirect positions across suppliers and services in Sydney's south-west.
The new hospital's location was chosen for its access to public transport, sitting close to bus and train services and the new Metro line through Bankstown — a deliberate shift from the existing Bankstown-Lidcombe Hospital site toward the commercial heart of the suburb.
Health infrastructure has been a running political contest in south-west Sydney, where population growth has outpaced hospital capacity for years. The Bankstown rebuild was a marquee commitment, and Thursday's start of physical works converts a long-promised project into visible construction.
Clinical services at the existing hospital continue unaffected during the early works, with the transition to the new facility to be planned as the main build progresses toward completion.