The independent member for Indi, speaking in federal Parliament on Tuesday, March 26, said "these three governments are planning on spending more than half a billion dollars on a hospital, sorry a 'clinical services building', which they already know will not meet the health needs of our community".

Dr Haines' claim comes less than a week after Greens Upper House member Amanda Cohn called on Health Minister Ryan Park to rethink his approach to the hospital redevelopment, describing it as a "dud commitment".

"When the current funding was announced, I welcomed it. The two premiers said they would fulfil our community's need for a new single-site hospital and I took them at their word. But since then it has become increasingly clear that this funding will not deliver that," Dr Haines said.

"In fact, a letter from Albury Wodonga Health's chief executive Bill Appleby and Chair Jonathan Green to the Victorian and NSW Health Ministers on December 19 last year said explicitly: 'This investment will not deliver the government's policy intent of a single-site hospital'.

"Of course, the NSW and Victorian governments will not admit this. We only know about this letter because of the excellent work of Dr Amanda Cohn in the NSW Parliament.

"Instead the NSW and Victorian governments are stonewalling, dismissing the evidence from our health leaders, clinicians and patients.

"Why is it that our health service, the biggest, busiest health service between Melbourne and Sydney, must look at other hospitals, smaller hospitals with smaller catchments and see that they got more funding?"

Dr Haines was referring to hospitals at Tweed Valley and Shellharbour receiving allocations of $700 million or more.

Former chair of Albury Wodonga Health Nicki Melville told lobby group Better Border Health this week that "our people require a hospital that is fit-for-purpose, future-proofed and able to recruit, train and retain the best clinicians".

"Only a single-site hospital on a greenfield, unhindered site will accomplish that."

Last year, Farrer MP Sussan Ley urged the NSW and Victorian governments to consider having a private-public partnership to bolster funding for the upgrade of Albury hospital.

"I've always raised the issue of the importance of a public-private partnership when it comes to health facilities," the former federal health minister said at the time.

"Unfortunately state governments don't like using the private system, but they need to look at things differently, because if public funding does not build the infrastructure we need, (then) we need to look at ways of a partnership with private health that would actually share that cost and give our community a strong hospital that has both public and private facilities, not that dissimilar to the cancer centre now."

Shortly afterwards, the offices of Victorian Health Minister Mary-Anne Thomas and Mr Park responded with disdain to the federal deputy Liberal Party leader.

"We won't be taking advice from Sussan Ley, whose only legacy as health minister is the most significant cuts to Australia's public health system of all time," a Victorian government spokeswoman said.