Bayside Health Merger Promises Stronger Care for Frankston and the Peninsula

Peninsula Health will merge with Alfred Health, Bass Coast Health, Gippsland Southern Health Service and Kooweerup Regional Health Service to form Bayside Health in January 2026. The new network, backed by the state government, is promising stronger access to specialists, faster transfers and more career opportunities for staff across Frankston and the Mornington Peninsula.

Frankston and Mornington Peninsula residents are being told to expect better access to care under a major health service merger announced by the State Government.

From 1 January 2026, Peninsula Health – which runs Frankston and Rosebud Hospitals – will join Alfred Health, Bass Coast Health, Gippsland Southern Health Service and Kooweerup Regional Health Service to form a new entity called Bayside Health. Together, the group would cover more than 1.2 million people across Melbourne’s south-east and Gippsland.

What is being promised

Government and health leaders say the merger will:

  • Expand specialist access closer to home, such as new melanoma and neurosurgery clinics already trialled at Rosebud and Wonthaggi hospitals.
  • Speed up patient transfers, with a commitment that patients could be moved within 24 hours once a referral and bed are confirmed.
  • Provide more training and career opportunities for local doctors, nurses and allied health staff, aimed at strengthening workforce retention.

Local hospitals to remain

The government has stated that Frankston and Rosebud Hospitals will keep their names and continue delivering local services. The merger is being described as a way of coordinating care, rather than consolidating or centralising services.

Next steps

A new board for Bayside Health is currently being established, with members drawn from the existing hospital boards. A Chief Executive Officer will also be appointed before the formal start date.

The government says the merged service will ultimately give patients a more streamlined experience, linking local hospitals with metropolitan specialists and clinical trials.

Investment in the system

The merger comes as the Allan Labor Government invests more than $31 billion in Victoria’s health system this year, including a $9.3 billion funding boost for public hospitals.

Minister for Health Mary-Anne Thomas described the merger as a way of improving access:

“The five health services were able to clearly demonstrate how Bayside Health will deliver better health outcomes, easier access to specialist care, and a more seamless experience for the 1.2 million Victorians they service.”