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NSW and Victoria will each invest $225 million, adding to $108 million already invested by the NSW and federal governments towards the project.
Premiers Dominic Perrottet and Daniel Andrews were in Albury on Thursday to confirm the funding promise on behalf of their states.
The redevelopment will include a new clinical services building to be built at the existing Albury campus and expanding the range and complexity of services offered on the Border.
An intensive care unit, maternity and paediatric services will also be part of the upgrades.
The site will include a new helipad with direct access to the ICU and emergency department, neonatal care and new operating theatres for more surgery, as well as a new 32-bed mental health ward to replace the Nolan House Mental Health Unit and the expansion of outpatient and specialist spaces for treatments such as dialysis.
Part of the first stage of the project includes building a new multi-level carpark on an adjacent site, allowing the new clinical services building to be constructed on the site of the current car park.
Hospital services in Albury-Wodonga are currently split across two campuses, with some services - such as anaesthetics - duplicated at both sites, while others require patients to travel back and forth between campuses to get the care they need.
"This $558 million project will transform healthcare for people in the Albury-Wodonga region, ensuring world-class facilities are within reach to those living on either side of the border for generations to come," Mr Perrottet said.
"This is a great example of co-operation across political lines to achieve the best result for those in and across the state border - creating a state-of-the art healthcare hub to modernise services for the region and attract a skilled workforce to work within it."
Mr Andrews added: "As the Border region continues to grow, we'll make sure healthcare workers and local communities on both sides of the Murray can have the facilities they need."
"We're working collaboratively with the NSW Government to give the growing Albury-Wodonga community the very best of care, now and into the future."
IN OTHER NEWS:
Albury hospital will continue to operate throughout construction. Once the hospital services currently being delivered at the Wodonga campus have been transferred to Albury.
The NSW and Victorian governments will work with the community and Albury-Wodonga Health to redevelop the Wodonga campus into a facility that will meet the needs of the community.
Construction on the new hospital is expected to commence in 2024 and be completed by 2027, with the works creating more than 1,000 jobs - boosting employment opportunities for border locals. Both governments will work closely with Albury Wodonga Health to ensure full services continue to operate at the existing hospital during construction.
Earlier this year, construction started on the new emergency department and short stay unit at Albury Wodonga Health's Albury campus - which includes 42 treatment spaces, a specialised resuscitation hub, paediatric treatment area, acute treatment area, and multiple triage rooms with their own accompanying waiting rooms.
Albury and Wodonga mayors Kylie King and Kev Poulton were in attendance for the announcement, as well as Victorian Health Minister Mary-Anne Thomas.
"This fantastic new hospital will create hundreds of jobs both during construction and once it's opened - attracting more people with the best skills to the border region," Ms Thomas said.
NSW Minister for Regional Health Bronnie Taylor was not in Albury for the announcement, but said the funding will deliver what the Albury-Wodonga community has been calling for.
"The NSW and Victorian governments are also in negotiation to deliver a new and improved health service management agreement, setting us on a path towards establishing Albury-Wodonga as a major regional health service," she added.
NSW Health Minister Brad Hazzard the state government had been working closely with its Victorian counterparts to ensure the growing Border community had access to world-class health services close to home.
"NSW Member for Albury Justin Clancy has done an exceptional job advocating for health improvements for the local community," he said.
"Thanks to his efforts, the community will have a new state-of-the-art hospital which will help improve health outcomes well into the future."
MORE TO COME
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