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AUSTRALIAN PENMAN HOSPITAL HAS launched its first phase of its $25 million hospital expansion on the west coast with the launch of the $20 million, multi-purpose hospital built at Palmerston and Waverley with support from the Commonwealth Bank, The Age reports.

A private hospital will be constructed with three separate locations including the existing facility at Palmerston, a residential nursing home and the new site at Waverley.

"The addition of the multi-purpose hospital is designed to deliver a better quality of life for the patients, staff, and local communities by providing an optimal level of patient, nurse and community care and services," said chief executive, Mark Laskowski.

"We plan to operate the new hospital at Palmerston and Waverley as a new model in a unique context and we have been working with local community groups and local communities around the state to find a design that best fits the site and the unique character of Palmerston."

The proposed expansion also comes as the Government prepares a final report on the cost-effectiveness and feasibility of the new facility.

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