Health Minister Jill Hennessy announced Bacchus Marsh Hospital would share in the first round of the new $200 million Regional Health Infrastructure Fund, which will rebuild rural and regional hospitals.

Djerriwarrh Health Services, which operates the hospital, will receive $9 million for an operating theatre expansion, including two extra theatres and a refurbishment of the existing one.

There will also be new recovery areas, ancillary areas and patient and staff change rooms.

They will also receive $1.6 million to renovate and expand the maternity unit, increasing the number of post-delivery beds from 11 to 15 and delivering a new three-bay nursery.

“We’re working to bolster the ongoing sustainability of Djerriwarrh Health Services so the community can feel confident knowing they can access safe, quality care and birthing services, close to home,” Ms Hennessy said.

It follows the release of a damning report into potentially avoidable baby deaths at Djerriwarrh Health Services, with 38 stillborn and newborn deaths recorded since 2001.

Ms Hennessy also announced Dr John Ballard’s tenure as Djerriwarrh Health Services administrator would be extended by a further 12 months.

He was first appointed in October 2015 and has overseen the appointment of a new obstetrics director and medical services consultant director, a 24-hour, on-call specialist paediatric service, medical equipment upgrades and more staff education and training.

Two new community advisory committees will also be set up to be chaired by Melton MP Don Nardella to ensure Djerriwarrh Health Services hears from the local community.

Buninyong MP Geoff Howard said the government was investing in the hospital’s future with a revamp that would “give patients and staff the modern and safe facilities they deserve”.