More funding for hospitals, improving services in the mental health system, reducing obesity, tackling waiting lists and helping train more doctors are the main priorities of a $2.4 billion boost to health, aged care and community services in the 2006–07 Budget.

New projects include doubling the size of the Royal Melbourne Hospital Emergency Department, the first stage of the rebuilding of the Box Hill hospital, funding for two new medical schools, redevelopment of five aged care facilities and two new community health centres.

Health Minister Bronwyn Pike said the Budget built on the Government's significant investment with more facilities, the latest medical equipment and a greater emphasis on preventing illness by tackling the obesity epidemic.

She said the Budget would also help hospitals meet the challenge of an ageing population and a massive increase in demand with a $498 million boost to their bottom lines.

'This funding will allow an extra 37,000 hospital admissions and will open up 22 extra specialist beds, including six intensive care beds, four neonatal intensive care cots and 12 special care nursery cots to treat the sickest children.

'A $10 million blitz on waiting lists will help people who have been waiting for elective surgery for operations like hip replacements.'

Other highlights in the $1.6 billion increase for hospitals include:

•          $56.3 million to double the size of the Royal Melbourne emergency department;

•          $47.7 million for new state-of-the-art medical equipment and $20 million for hospital maintenance;

•          $38.2 million to build a new dialysis centre and outpatient department at Box Hill Hospital in the first stage of a major redevelopment;

•          $847 million to build the brand new Royal Children's Hospital in Parkville;

•          $31.2 million to help train 160 new doctors in a new medical school in Geelong and an expansion of Monash, Gippsland;

•          $25 million for new ambulance equipment, communication systems and expanded services in Sebastopol, Pakenham and Cranbourne North;

•          $3.7 million for intensive care equipment and $2.5 million for more radiotherapy equipment to treat cancer;

•          $16.1 million to support hospitals develop e-health, an electronic national health record;

•          $4.5 million for hospitals to prepare for a bird flu pandemic;

•          $20.2 million previously announced for a new Intensive Care Unit at the Alfred Hospital and $3.6 million to upgrade emergency departments.