Funding to support Victorian public hospitals replacing critical medical equipment, improving patient safety and essential clinical continuity, with $87 million allocated to 21 health services.
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What is the Medical Equipment Replacement Program?
The Medical Equipment Replacement Program (MERP) is a Victorian Government program supporting replacement of ageing, high-risk medical equipment essential to acute and subacute services in Victorian public hospitals.
The program is administered through the Victorian Health Building Authority. In October 2026, the government announced $87 million for 21 health services under the latest allocations. This funding has already been awarded.
Medical Equipment Replacement Program level of support
Funding amount
- Overall program funding announced: $402 million.
- Latest awarded allocation: $87 million across 21 health services; this is not an open funding pool.
- High Value Statewide Replacement Fund: eligible individual replacement assets valued above $200,000, subject to critical-risk assessment.
- Specific-purpose capital grants: typically in-scope assets valued up to $200,000; higher-cost replacements may be supported when they represent the highest outstanding risk.
- Minimum individual grant: not specified. Maximum individual grant: not specified. The $200,000 distinction is an asset-value threshold, not an absolute grant cap.
Co-contribution requirements
- No fixed co-contribution percentage is specified in the published guidelines.
- Health services are responsible for project cost increases and any unapproved or unfunded scope.
Medical Equipment Replacement Program objectives
- Protect patients and healthcare workers by addressing critical risks.
- Maintain clinical service continuity and minimise disruptive equipment or infrastructure failure.
- Replace end-of-life assets according to assessed urgency and health service asset management plans.
- Strengthen reliable acute and subacute care across Victoria.
Projects and expenditure eligible for Medical Equipment Replacement Program support
Eligible replacement activities
- MRI, CT, digital X-ray and mammography equipment; fluoroscopy and SPECT-CT imaging units.
- Ultrasound, echocardiography, endoscopy and surgical microscopes.
- Anaesthetic units, ventilators, defibrillators and other listed life-support equipment.
- Eligible sterilising, monitoring, therapeutic and operating-theatre equipment.
Funding is for replacement of in-scope, project-ready, end-of-life assets that present an unacceptable risk to safety or service delivery. The official guidelines contain the complete eligible asset schedule in Appendix 1.
Ineligible projects and expenditure
- Medical software, implantable devices and non-medical equipment.
- PACS, clinical information systems and related ICT infrastructure.
- Consumables, haemodialysis units, pathology instruments and PET-MR equipment.
- Recently completed capital projects and assets covered by public-private partnerships.
- Assets for non-acute or non-subacute aged care, rehabilitation, dental and mental health services are outside the general eligibility scope.
- Items procured or contracted before the funding approval letter are not eligible.
Other Medical Equipment Replacement Program important details that you will need to know
Organisations eligible for Medical Equipment Replacement Program support
- Eligible Victorian public health services delivering acute or subacute services in legislated public hospitals.
- Metropolitan and regional public health services replacing qualifying critical in-scope assets.
- Eligible public health reference laboratories for specified equipment replacement.
Medical Equipment Replacement Program assessment criteria
Applications are assessed through a critical-risk framework rather than published percentage-weighted grant criteria. The guidelines assess highest critical risk, considering:
- Patient safety: consequences and likelihood of harm.
- Occupational health and safety: risks to staff and others.
- Service continuity: impact of potential asset failure on essential clinical services.
- Project readiness, governance, evidence, costs and technical feasibility.
How do I get Medical Equipment Replacement Program support?
Eligible health services should demonstrate:
- That the asset is in-scope, end-of-life, essential and among the highest critical risks.
- Evidence of safety or service-continuity risk, and why maintenance is insufficient.
- Project readiness, achievable delivery milestones and credible cost estimates.
- Alignment with asset management plans and Local Health Service Network objectives.
- Chief Executive Officer endorsement and priority ranking for application-based high-value submissions.
Information to prepare for the Medical Equipment Replacement Program application
- Asset description, condition, age, failure history and relevant risk-assessment evidence.
- Health service asset management plan and the proposed asset priority ranking.
- Project scope, quotes, cost plan, photographs and relevant design drawings.
- Proposed delivery program, procurement approach and implementation risks.
- Full lifecycle costing and detailed options analysis for applications above $1 million.
These reflect published application requirements; consult the applicable round forms for the exact requested attachments.
Applying for Medical Equipment Replacement Program support
Register your interest with GrantHelper to explore your alignment with this grant and how we can assist you to increase your chances of success.
Medical Equipment Replacement Program resources
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