And one Border doctor says more funding needs to be committed, as planned upgrades to Albury Wodonga Health are just "Band-Aid" solutions.

Victorian Health Minister Jenny Mikakos and her counterpart Brad Hazzard visited Albury Wodonga Health with the news construction on the emergency department redevelopment would start mid-2021.

Ms Mikakos announced her government would add nearly $6 million to the $30 million committed by the NSW government in 2017, with that extra contribution enabling Albury Wodonga Health's first short stay unit.

"It will expand the capacity of the emergency department quite significantly, more than doubling the number of treatment spaces from 16 to 42," she said.

"Then we will get on with turning the existing emergency department space into, for the first time for this community, a dedicated 16-bed day clinic.

"That means patients in the emergency department will be able to get a bed and make sure that the patient flow can improve.

"We acknowledge this is a particularly busy hospital."

When Ms Mikakos was asked why Victoria did not match NSW's $30 million, she said she looked forward "to continuing to work with Brad about the future needs of this hospital".

"I think the announcement we've made together today is a really important one," she said.

"It's a huge win for this community because it will get an expanded ED as well as a short stay unit.

"Let's not forget it was actually the funding from the Victorian Regional Health Infrastructure Fund that got the project going in the first place in 2016, [with] dedicated funding for planning.

"We have made contributions through other projects through that fund, more than $6 million to date for palliative care and other infrastructure this hospital needs, and I look forward to considering other requests."

Mr Hazzard was also not drawn on questions about Victoria's contribution.

"I think our community, particularly in this area, has had a pretty tough time in the last five months," he said.

"I am going to be absolutely positive today and say and that I'm delighted to be announcing the $36 million."

In the lead-up to the Victorian election in 2018, more than 40 medical professionals signed a letter arguing the health service was being neglected, and Albury-Wodonga Health's director of critical care services David Clancy recently described working in the emergency department amid bed shortages as "like trying to fight with one arm tied behind your back".

Ms Mikakos said design work for the new ED would start immediately, with work to be finished by the end of 2022.

"They've seen about 68,000 patients typically in the ED every year," she said.

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"With the doubling of the capacity of the ED, they'll be able to see about 80,000 patients a year."

Albury MP Justin Clancy and Benambra Bill Tilley were both at Albury Hospital on Wednesday morning for the announcement, as were the Border's mayors Kevin Mack and Anna Speedie, and Victorian Opposition Leader Michael O'Brien with Shadow Health Minister Georgie Crozier.

Gynaecologist Scott Giltrap was also there - being one of the 40 health professionals who signed the 2018 letter - and said the medical profession felt "let down" by the Victorian contribution.

"The problem is we're spending all this money on Band-Aid services," he said.

"The Accident and Emergency is catering for 60,000 patients at the moment and it's only equipped to cater for 40,000. They can't cope.

"Projections are by the time it [the new ED] is built, they'll be overloaded."

"What we need to urgently progress is the master plan for the future to develop services for the next 30 years.

"That requires a new hospital somewhere in the region of Albury-Wodonga."

Asked if a 'greenfield' site for Albury Wodonga Health was still on the cards, Mr Hazzard said currently, the best use of money was upgrading the current campuses.

"We're working on our intergovernmental agreement ... I think that will be resolved in the pretty near future, and then we can start looking in an even more collaborative way about some of the other proposals that have been put forward," he said.

"At the present time, I think the best use of the money is on the current campuses, and to upgrade them.

"But you know what? Health is an evolving situation and we need to be looking forward as well for longer-term plans, so we'll have good chats about that."

Ms Mikakos said the states' health departments were "very close to finalising" an updated intergovernmental agreement.

But Benambra MP Bill Tilley said the agreement "was sitting ready" for the health service, which is managed by the Victorian government and jointly funded.

"With all due respect, Minister Mikakos could walk in there and sign it today," he said.

"But they want to play out a little bit more about sticking points on fair and equitable capital investment."

Board chair Nicki Melville said AWH had been waiting "a long time" for the two governments to sign off on the agreement.

"That's really important, because that gives us that governance framework, and it will take us out to 2035. We're hoping that will be announced very soon," she said.