The Barnett Government has removed funding to redevelop Royal Perth and Graylands hospitals from the Budget, casting serious doubt over both projects.

And the cost of renegotiating with Serco its facilities management contract for delays to Fiona Stanley Hospital has been revealed to be $53 million.

The Budget previously included $67 million to June 2017 of the estimated cost for the RPH stage 1 works of $180 million and $11.3 million for Graylands.

Treasurer Troy Buswell announced yesterday that money had been reallocated to help pay for $238 million of information technology and commissioning of Perth Children's Hospital.

Just $8 million for RPH remains - for planning.

"The reason the planning money is there this year and next year is to enable the Health Department and the minister to develop a sound business case for the long-term future of Royal Perth," Mr Buswell said.

Opposition Leader Mark McGowan accused the Premier of breaking his 2008 election promise to redevelop RPH, which Labor had planned to close.

"RPH upgrades were promised in 08 and they were promised in 2013, and now we find that one is gone," Mr McGowan said. "Do you remember the Save RPH campaign Mr Barnett personally ran with a big chunk of lump of money attached to it?"

The Government has been forced to find an extra $191 million this year and $440 million over four years for the Health Department, including to open the Fiona Stanley and children's hospitals and because it failed to meet its leave liability cap.

Mr Buswell admitted the Government's original April 2014 opening for the Fiona Stanley Hospital had been too ambitious and said some of its IT components had been scaled back, meaning productivity gains anticipated at the "paperless hospital" would not materialise.

"We are yet to understand fully what that means in terms of our cost modelling," he said.

Mr McGowan said Government claims about Fiona Stanley Hospital were laughable and it could cost taxpayers $200 million from bungling in having a hospital with no patients.

The West Australian

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