The Lakes Road lot next to Peel Health Campus could soon be home to new healthcare services.
At the February council meeting, City councillors voted unanimously to reclassify 53-59 (Lot 4) Lakes Road from residential to special use.
This will accommodate future health related land uses such as aged care, consulting rooms, a hospital, medical centre, office or recreation.
Mandurah mayor Rhys Williams said it was exciting to see private interest in the health precinct.
"One of the opportunities is for it to become a world class health provider," he said.
"Hopefully it allows for some more opportunities to come forward by accepting this structure plan."
The proposal seeks to improve healthcare in the area and expand medical services available to the wider Mandurah population.
According to the council report, it will help to consolidate Lakes Road as the primary regional healthcare centre for Mandurah and the broader Peel region.
The approved report from the council will now go to the WA Planning Commission before the lot can be reclassified.
The reclassification comes as a procurement process for an adjoining private hospital at Peel Health Campus is underway.
From 2023, the Peel Health Campus is expected to be brought back into public hands as a state-run hospital, while a licensed private hospital provider will design, build and operate a co-located private hospital.
Invitations for expressions of interest from licensed private hospital providers were in place in December.
After the completion of the expressions of interest process, a shortlisted group of potential providers may be invited to an industry briefing and market engagement sessions in 2022 before a final group is invited to submit a commercial proposal.
The request for proposal is expected to be released in mid-2022.
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