The state government is not prepared to invest more money into Peel Health Campus (PHC) until the current management contract expires, according to Murray-Wellington MP Robyn Clarke.
With the PHC expected to service 400,000 residents by 2050, there is concern the hospital won't be able to meet demand.
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In an article last year the Mandurah Mail reported the local hospital's chief executive saying Ramsay Health Care would put a "significant investment" into PHC if the state government could provide long-term surety.
Andrew Tome, who took on the role in September 2019, said he was "very keen" for Ramsay to be a part of the Peel community beyond the current contract - which is due to expire in August 2023.
Ramsay took over the management of PHC in 2013 and was granted a five-year extension in 2018.
According to a state government spokesperson, the government is still considering whether to renew Ramsay's contract.
"The state government will consider all the options available with a continued focus on patient safety and provision of quality hospital services to the Peel region," the spokesperson said.
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However, Ms Clarke said it would be difficult for the state government to invest more into the PHC until the Ramsay contract had expired.
"Our government is in a very precarious situation with the Peel Health Campus as the previous Liberal government signed a contract with Ramsay three months out from the election...and they signed a five-year contract," she said.
"The state government is not prepared to spend billions of dollars on a hospital that is privately run, which the company would benefit from financially.
"The McGowan government's hands are fairly tied at the moment given the situation with the Peel Health Campus - we are doing everything to ensure that the minute that contracts up we have a plan in place."
Dawesville MP Zak Kirkup said the Labor government needed to invest more into the PHC soon to minimise ambulance ramping and meet demand.
"We have been demanding more investment in Peel Health Campus now from this Labor government for years - but they continue to offer nothing but hollow promises and spin," he said.
"Mandurah deserves better than this."
