Health Infrastructure is overseeing a more than $1 billion expansion and upgrade of Nepean Hospital and community-based health services, which is being delivered in two stages.
Nepean Hospital, which is major metropolitan referral hospital within the Nepean Blue Mountains Local Health District, requires a significant expansion and upgrade of hospital and community-based services to meet to the future health needs of the rapidly growing communities.
Construction of the Stage 1 tower was completed 2021 and fully opened in 2022. Construction of Stage 2 is well underway and is scheduled for completion in late 2026.
On the other side of the hospital campus, construction of a new Child and Adolescent Mental Health Unit was completed in early 2026.
News and updates
Nepean Hospital partners with Art Gallery of NSW to enhance palliative care experience
Reproductions of artworks from the Art Gallery of New South Wales collection will feature throughout Nepean Hospital’s new palliative care unit, in a new partnership between the Art Gallery and hospital.
New outdoor spaces to create comfort and healing at Nepean Hospital
Patients, families and staff at Nepean Hospital will benefit from a network of thoughtfully designed and welcoming outdoor spaces that bring nature closer to care.
Art, well-being and community at the heart of new Nepean Hospital building Mental Health Unit
Vibrant artworks inspired by the landscapes, stories and communities of the Nepean and Blue Mountains region have been installed across Nepean Hospital’s new clinical building, as construction enters its final phase.
Nepean Redevelopment Project Update August 2026
A summary of the latest construction activities and milestones onsite at Nepean Hospital.
Spotlight on the new Transit Lounge
Nepean Hospital is set to enhance patient flow and improve the patient experience from arrival through to discharge with the introduction of a dedicated Transit Lounge.
Project information
Benefits
The project will:
- Deliver to Penrith, the Blue Mountains and surrounding communities a contemporary, integrated hospital and community-based health service to meet their needs now, and into the future.
- Enable health staff to provide the highest quality of care in a contemporary health setting for decades to come.
- Improve access to integrated, person-centred closer to home.
- Improve access to innovative, effective and welcoming health services for people living in rural and remote communities in western NSW.
Designed in collaboration with young people and their families, the CAMHS facility will:
- provide a comfortable and safe place to receive the very best therapy and support
- help staff better respond to the individual needs of young people.
The new Palliative Care Unit at Nepean Hospital will:
- provide specialised care and support in a purpose-built unit to people with life-limiting illnesses in the Penrith and Blue Mountains regions.
Scope
Stage 1, which is now complete, includes:
- a new 14-storey hospital tower
- a new and expanded Emergency Department
- 16 new operating theatres
- 18 birthing suites in new accommodation, an increase of ten
- a new Neonatal Intensive Care Unit
- Cardiology services
- Several floors of in-patient units (bedrooms) in new accommodation
- a new multi-storey car park featuring a roof-top helipad
- new community health services
- expansion of Nepean Cancer Care services.
Stage 2, which is currently under construction includes:
- a new adult intensive care unit
- additional inpatient beds
- medical imaging and nuclear medicine services
- clinical support services including pharmacy and in-centre renal dialysis services
- staff education and training facilities
- new main hospital entry and reception area.
The CAMHS facility will feature:
- 10 single bedrooms with ensuites
- a secure indoor communal area and private outdoor courtyard
- consultation rooms
- nurses’ station and workspaces.
The new Palliative Care Unit at Nepean Hospital will:
- be located on Level 7 of the Stage 2 Tower of the current Nepean Hospital Redevelopment.
- 16 palliative care beds with ensuites
- Consultation and meeting rooms
- A range of communal indoor and outdoor spaces
- Therapeutic spaces
- Staff administration and support areas.
Nepean Hospital Redevelopment - Stage 1
The new 14-storey hospital tower (Building A) was completed and opened in 2022.
The new tower, delivered under Stage 1 of the Nepean Redevelopment, is one of the tallest hospital buildings in Australia – at more than 100 metres above sea level – with majestic views stretching to the Sydney CBD across to the Blue Mountains.
The Stage 1 tower includes an expanded Emergency Department, 18 birthing suites, a Neonatal Intensive Care Unit, more than 16 operating theatres and more than 200 additional beds in contemporary and bright in-patient units.
Find out more about Nepean Hospital
Nepean Hospital's new multi-storey car park opened in 2019, providing more than 600 car spaces, including 14 disabled spaces, and pram and senior parking for patients, visitors and staff to the Nepean Hospital campus.
The NSW Government provided $26 million for the new multi-storey car park and temporary rooftop helipad as part of the Stage 1 Nepean Redevelopment.
Visitors can access the multi-storey car park via Parker Street or by entering via Gate 3 on the Derby Street roundabout.
The multi-storey car park is a boom-gated facility and has security lighting, video surveillance and help points that provide a safe parking option.
Somerset Cottage Early Childhood Education and Care Centre provides child care for children aged 0 – 5 to Nepean Blue Mountains Local Health District staff and their families on the Nepean Hospital campus.
The new Somerset Cottage Early Childhood Education and Care Centre was officially opened in July 2020.
Childcare staff and children moved in to the new centre in June 2020 following an operational commissioning and accreditation process.
The new purpose-built centre is located on the northern edge of the campus and has capacity for 68 children. The centre was built in consultation with Somerset Cottage childcare staff and parents to create a fun, safe and welcoming environment for everyone.
The new centre features generous amounts of natural light and a colourful fresh outdoor playground.
The old childcare centre was within the redevelopment zone of Stage 1 and was demolished to facilitate construction of the 14-storey clinical services tower.
Learn more about Somerset Cottage Early Childhood Education and Care Centre.
Somerset Cottage Early Childhood Education and Care Centre
Read transcript
The Nepean Cancer Care Centre received an expansion and upgrade of services as part of Stage 1 of the Nepean Redevelopment.
The new services at Nepean Cancer Care Centre included 15 chemotherapy chairs, a third radiotherapy bunker and new consultation rooms. These works were completed in 2019.
Learn more about Nepean Cancer and Wellness Centre
Nepean Hospital Redevelopment - Stage 2
Stage 2 of the Nepean Redevelopment includes the construction of a seven-storey building that will seamlessly connect to the 14-storey tower on the Nepean Hospital campus. Prior to construction starting on the new building, Stage 2 included refurbishment and repurposing of existing hospital spaces that were vacated after the Stage 1 tower opened in 2022, including including a new purpose-built Pathology Department. These refurbishment works were completed in 2024, paving the way to start main works construction on a new Stage 2 building in 2024.
A new community health centre in Penrith is also part of the Stage 2 program of works.
The NSW Government is delivering a new community health centre in Penrith as part of Stage 2 of the more than $1 billion Nepean Redevelopment.
Located on Soper Place, the new community health centre will provide access to integrated health care services for adults including HealthOne services for people living in western Sydney.
Construction time frames will be confirmed as planning progresses.
Nepean Hospital's new Pathology Department was officially opened in August 2023, providing staff the latest in cutting-edge medical technology to perform vital diagnostic testing.
The new facility, which was fast-tracked as part of Stage 2 of the redevelopment, is one of the first NSW Health Pathology laboratories to be fitted with advanced new chemical pathology analysers, and will provide a range of common tests such as liver and kidney function tests and diabetes monitoring.
The department will be in a larger, purpose-built facility and provide significantly expanded pathology services to meet the needs of the growing local communities and boost health outcomes in the region.
At around 1.5 times larger than the previous laboratory, the expanded lab will revolutionise the way staff work and enhance the services and facilities available to patients being treated at Nepean Hospital.
Nepean Hospital's new Pathology Department
Our team talks about the benefits of the Nepean Hospital's new Pathology Department.
Child and Adolescent Mental Health Services (CAMHS)
The CAMHS facility is part of the NSW Government’s $700 million Statewide Mental Health Infrastructure Program (SWMHIP), which supports the delivery of mental health care reform in NSW.
A new Child and Adolescent Mental Health Services (CAMHS) Unit is under construction at Nepean Hospital to meet the health needs of young people aged between 12 to17 years old living in Western Sydney and the Blue Mountains.
In February 2023, Donnelley Constructions was appointed to deliver the new purpose-built 10-bed treatment facility, which will be located next to the Nepean Mental Health Unit.
Construction of CAMHS was completed in early 2026.
Palliative Care Unit
The new palliative care unit at Nepean Hospital is being delivered as part of the NSW Government's $93 million commitment to redevelop and refurbish palliative care units across the state as part of the World Class End of Life Care program.
The new Palliative Care Unit at Nepean Hospital is well progressed. The planning and design phase of the project in now complete and Health Infrastructure is expected to award a construction tender to deliver the fit-out of the Level 7 space in the coming months.
Community engagement
The planning and design of the Unit has involved extensive consultation with palliative care health professionals, carers and community members, to ensure the best outcome for the Nepean Blue Mountains community.
Feedback from the community has also influenced the design for the new Unit. Over the last few months the project team has held various community engagement focus groups and online surveys to ensure we captured meaningful feedback at key decision-making points for the project. The outcomes from this engagement has been captured in a report that is currently being considered in the detailed design user groups.
- Download the Community engagement report (PDF 733.41KB)
- Download the Aboriginal community engagement report (PDF 408.53KB)
Once the design process is complete, we look forward to sharing which elements of the feedback included in our report were able to be adopted in our design and model of care.
Construction of the new Palliative Care unit at Nepean Hospital is scheduled to start following the completion of planning and design.
Project timeline
Building a hospital involved 3 key phases – planning, design and delivery.
Planning
| Project announced |
| First Consumer Committee meeting held |
| Stage 2 funding announced |
| DA for new childcare centre approved |
| Stage 2 brought forward by 2 years. |
Design
| Schematic designs released for Stage 1 |
| Schematic designs released for Stage 2 |
| Artist impression released for new Palliative Care Unit |
| Design phase complete for Palliative Care Unit |
Delivery
| Works begin |
| New car park opened |
| Nepean Cancer Care construction complete |
| Somerset Cottage opened |
| Construction of first hospital tower complete |
| New hospital Emergency Department opened |
| Nepean Hospital Pathology Department opened |
Frequently asked questions
More than $1 billion has been committed by the NSW Government for Stages 1 and 2 of the Nepean Redevelopment, which includes a major expansion and upgrade of hospital and community-based services.
The new Child and Adolescent Mental Health Unit is part of the $700 million Statewide Mental Health Infrastructure Program to deliver new and enhanced mental health facilities across the state,
The new Palliative Care unit at Nepean Hospital is part of $93 million allocation by the NSW Government to redevelop or refurbish palliative care units across the state as part of the World Class End of Life Care program.
The clinical scope for each other projects at Nepean Hospital are informed by the Nepean Blue Mountains Local Health District (LHD) health services planning and extensive consultation with key representatives within NSW Health. The clinical services listed in the scope were all identified as key priorities to ensure the Nepean Blue Mountains Local Health District can continue to deliver quality care well into the future.
To stay updated on the latest news from the project, you can subscribe to our newsletter or follow us on social media.
Community engagement and culture
Opportunities for community engagement
It's essential that health facilities meet the needs of the people who use them for decades to come. We'll be updating our Have Your Say page when opportunities arise for community input.
Dharug Language Signage
The Nepean Redevelopment initiated the Dharug Signage Project to create vibrant Aboriginal signage that improves wayfinding and makes the new facilities culturally appropriate and welcoming.
Learn about how we create culturally appropriate hospital spaces.
Arts in Health
We've commissioned artists to create artworks for Nepean Hospital that reflected the natural and cultural aspects of the area. The integration of arts into the design and delivery of health services will benefit patients, visitors and staff.
Related documents
Project documents
Download project documents including plans, designs and approvals.
Media gallery
Timelapse of the Nepean Redevelopment Stage 2
Timelapse of Nepean Hospital Redevelopment's main entry atrium
Spotlight on sensory room in new Child and Adolescent Mental Health Services Unit at Nepean Hospital
Nepean Hospital Redevelopment Stage 2: Project update on the new Paediatrics unit
Nepean Hospital Child & Adolescent Mental Health Service fly-through animation
A new child and adolescent mental health facility will be built at Nepean Hospital to meet the health needs of young people in Western Sydney who experience mental illness.
Nepean Redevelopment Stage 2 fly-through animation
A range of essential health services will be delivered in Stage 2 of the $1 billion Nepean Hospital Redevelopment.
Related projects
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Contact our project team
- Address: Derby Street, Kingswood NSW 2747
- Post: PO Box 63, Penrith NSW 2751