Health Minister Chris Picton announced late on Monday the state government would not be building the new Women’s and Children’s Hospital at the railyards site adjacent to the Royal Adelaide Hospital.

Premier Peter Malinauskas will announce the new location at a press conference before midday.

“It is now clear the former government’s proposed site for the new Women’s and Children’s Hospital was short-term thinking,” Picton said in a statement.

“It’s too small, too medically risky and doesn’t leave the opportunity to expand in the future.

“What’s worse, the former government was going to spend at least $2.8 billion for a hospital which was not fit for purpose.”

Infrastructure and Transport Minister Tom Koutsantonis said building the new hospital at the railyards would be “sterilising” any opportunity for further expansion.

“I think it’s fair to say that the Premier is a bit sick and tired of short term thinking in government, he wants some long term thinking,” Koutsantonis told ABC Radio this morning.

“And I think he’s pretty confident that if the former government’s chosen site for the Women’s and Kids Hospital was built on that site we are basically sterilising any ability to expand either the Women’s and Kids or the Royal Adelaide Hospital.

“The government’s been busy working on how to improve the Women’s and Children’s Hospital and later on today the Health Minister and the Premier will be revealing all those details to all media outlets simultaneously.”

Construction on the new Women’s and Children’s Hospital was initially scheduled to commence in late 2022, but the Malinauskas Government labelled that timeline “a fantasy” last month.

Opposition leader David Speirs said the government’s decision means its “unlikely” a new Women’s and Children’s Hospital will be built this decade.

“Peter Malinauskas’ decision to scrap the plans for the new Women’s and Children’s Hospital has plunged our struggling health system into further uncertainty as ramping soars to record levels,” he said in a statement. 

“At this rate under Peter Malinauskas’ leadership, it’s unlikely we’ll see a new Women’s and Children’s Hospital this decade. This is why South Australians can’t trust Labor when it comes to health.”

The former Marshall Government’s initial project cost for the new Women’s and Children’s was put at $1.95 billion.

Labor committed before the state election to spend $100 million fitting in an extra 50 beds into the new hospital’s wards such as cancer and mental health.

Asked in February whether the election policy would delay the hospital’s scheduled 2027 opening, Malinauskas, then-opposition leader, said: “we don’t believe so”.

More to come