Kiama Hospital could become a centre of aged care excellence under a proposal before Kiama Municipal Council tomorrow.
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The council's general manager, Michael Forsyth, said the idea of redeveloping the hospital site had been around for some years but now could be developed into a $40 million aged care hub.
The proposal before councillors is to consider bringing together a redeveloped hospital and expanded Blue Haven Aged Care Facility with the University of Wollongong, all while harnessing the benefits of the National Broadband Network (NBN).
"The suggestion came up to look at opportunities to work with the university to potentially have programs and training provided on site," Mr Forsyth said.
"Presently, we have trainee nurses and doctors that come to Blue Haven. This would be an opportunity to expand that and use the NBN to look at telehealth services."
Using the NBN could mean patients would consult with their specialist over the internet rather than driving to Sydney or Wollongong for appointments.
"It would be one place for people to come for aged care services.
"It would provide opportunities for training with UOW that could potentially be a centre that can send out training courses and programs through the use of the NBN.
"It would be an example of what can be done around Australia."
The council already has bed licences to expand Blue Haven from 82 to 134 beds.
Mr Forsyth said if the proposal was approved, he hoped to sign an agreement with the area health service in the next couple of months with construction to commence within 12 to 18 months.
"There is a heritage building, Barroul House, which we would protect and upgrade and restore.
"The project would involve new construction and a conservative estimate of thirty to forty million is projected."
Mr Forsyth said the funding for the project would depend on the agreement with the health service.
The council would fund its share through aged care bonds, paid for by residents in care facilities and there would be loans but no ratepayer funding.