One of the region's state politicians has called on the West Australian government to provide a long-term plan for Peel Health Campus, after the company operating the facility expressed a desire for an extended contract.
The Mandurah Mail reported last week the local hospital's new chief executive said Ramsay Health Care would make a "significant investment" at PHC if the state government could provide them with long-term surety.
Andrew Tome, who took on the role in September, said he was "very keen" for Ramsay to be a part of the Peel community beyond their current contract - which is due to expire in August 2023.
Ramsay took over the management of Peel Health Campus in 2013 and were granted a five-year extension last year.
Mr Tome told the Mandurah Mail he hoped negotiations could begin regarding a further contract extension so Ramsay could invest in the hospital.
Dawesville MP Zak Kirkup, who has led a community campaign for government expenditure at PHC, said he would continue to fight for further investment.
"There can be no doubt that the one thing Mandurah wants more than anything else, is a long-term investment in our local hospital," he said.
"We need certainty that we're going to see the hospital invested in, expanded and operating to meet the needs of our community now and well into the future.
"That's what I've been fighting for and I'm not going to stop until we get the hospital we deserve."
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A South Metropolitan Health Service spokeswoman said there were no plans to begin contract negotiations yet.
"The current expiry date of the contract is August 2023 and there are no further extension options available beyond this date," she said.
"The state government will be required to undertake an open tender process."
She added the government were satisfied with the current operation of the hospital by Ramsay Health Care.
"PHC continues to provide essential, reliable and quality health services and PHC staff are dedicated and committed to providing excellent care and treatment to those living in the Peel region," she said.
"Recent investment in infrastructure works at the Campus represents the government's commitment to the people in the Peel region to having access to an essential and reliable health service close to home."
However, Mr Kirkup said further investment in the hospital was needed.
"I call on the (Health) Minister (Roger Cook) to provide the community with a timeline as to when we can expect the significant state investment we deserve," he said.
"Anything less than these assurances should cause all of us to be very concerned about the future of our hospital.
"Labor is literally playing politics with our lives - Mandurah deserves better than that."