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WA's first 'medihotel' to be operating in Perth's south by 2021, Government says

The first of the WA Government's new "medihotels" will be privately built and operated and open by 2021, the state's Health Minister has confirmed.

In a move that has prompted accusations of hypocrisy - after Labor repeatedly attacked the "privatisation" of the health sector while in opposition - developer Fini Group will build the facility and contract a private operator to run it.

The first of the facilities will be built at a site adjacent to Fiona Stanley Hospital in Murdoch and will include the 60-bed medihotel, as well as an aged care precinct, apartments and retail space.

Under the deal being finalised with Fini Group, the developer will fund the construction and then contract private healthcare provider Aegis will operate it.

Prior to the election, Labor promised to build multiple medihotels, saying they would mostly house regional patients who no longer required full-scale hospital treatment but were not ready to return home.

Health Minister Roger Cook said the facility would help free up hospital beds and create a more efficient system.

"A standard hospital patient can be anywhere from $1,800 to $3,000 per night, a medihotel patient from the costings we have done will cost somewhere between $120 and $200 per night," he said.

"This will save money and makes our hospital system more efficient but at the same time provide better healthcare."

Public hospital patients deemed suitable will be housed in the facility, at the Government's expense, but the medihotel will also be open to private patients.

Developer Adrian Fini said it would not require capital contribution or ongoing subsidy from the Government, beyond the payments for the housing of patients.

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