Dominic Perrottet said one of his 12 siblings had moved to Albury and he gave him and his sister-in-law the tip-off about the $558 million hospital expansion.

"I was having dinner with my brother, who lives in Albury, last night and he was speaking about healthcare and I gave him a bit of insight about what we were about to announce and for him with two young children and one on the way, they both spoke to me about the...difference this will make for them having just come here to live," Mr Perrottet said.

Mr Andrews reflected that his late father Bob, who lived at Wangaratta, had received treatment at the Albury-Wodonga cancer centre at the hospital site.

"I know firsthand, not just as a premier but as a son, that the staff here are just first-rate and now we're going to give them the buildings to match," Mr Andrews said.

As to big brother, the Commonwealth, Mr Perrottet was adamant there was no need for federal investment in a new hospital.

"When it comes to healthcare we stand on our own two feet," he said.

"We've done that in our state, the Victorian government has done that in their state."

Indi MP Helen Haines had led the push for a federal contribution to a new hospital.

"This announcement is reward for our advocacy, the result of constantly fighting for our healthcare to be taken seriously by every level of government," Dr Haines said of Thursday's deal.

"This redeveloped single-site hospital will benefit people all over North Eastern Victoria and southern NSW, more care will be available close to home without having to travel to Melbourne."

Albury hospital's new building will house an intensive care unit, maternity services, paediatrics, neonatal care and additional operating theatres.

There will also be a new mental health unit and fresh helipad.

That means the replacing of the outdated Nolan House will take longer than previously expected.

Mr Andrews' government enters caretaker mode next week ahead of the November 26 election.

He said his party Labor would have a candidate in Benambra for the poll but could not say when the hope would be revealed.

Independent candidate for Benambra Jacqui Hawkins cautiously welcomed the hospital deal.

"I understand there will be disappointment, however, this investment has been fully committed now, and stands regardless of the result at the Victorian election," Ms Hawkins said.

HISTORY IN STORIES:

OUR SAY - GIVE US A NEW HOSPITAL:

ADVERTISING

To read more stories, download The Border Mail news app in the Apple Store or Google Play.

Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content: