A $750 million private hospital planned for Brisbane’s east has been given the green light by the state government, bypassing council approvals and potentially reshaping traffic on one of the area’s busiest roads.

Deputy Premier Jarrod Bleijie formally granted a Ministerial Infrastructure Designation for Hub68 Centre for Excellence in Ormiston, with the decision announced in Friday’s Queensland Gazette.

“The Hub68 Centre for Excellence has the potential to deliver more than 140 hospital beds and other health facilities,” Mr Bleijie said.

“Projects like this were left to languish under Labor and the Crisafulli Government is getting on with the job of supporting infrastructure and facilities for growing regions such as Redland,” he said.

The designation, made under the Planning Act, allows the project to proceed through a state planning pathway rather than the more time-consuming development assessment process with Redland City Council.

The decision clears a major planning hurdle for developers Cleveland Rural Pty Ltd (trading as Hub68) and paves the way for detailed design and construction of what could become one of Redland city’s largest private health developments.

The site is less than 3km from the public Redland Hospital and Mater Private Hospital in Weippin St, Cleveland, and is expected to provide a new option for local patients seeking private healthcare without the traffic and parking challenges at existing facilities.

Details in the approval reveal the scale of the proposed health megacentre, including new road infrastructure linked to the site.

The development centres on a five-storey private hospital that could contain up to 166 beds and 14 operating theatres, forming part of a major integrated health precinct expected to include a 60–80 bed nursing home, a childcare centre, and medical training and education facilities.

Plans outline a comprehensive medical facility offering specialist services including surgery, rehabilitation, cardiology, and mental health treatment alongside day infusion services such as dialysis and chemotherapy.

The precinct is also intended to incorporate education and research facilities, with the possibility of partnerships with universities to train future doctors, nurses, and allied health professionals.

Medical services have already started operating at the 4ha site at the corner of Finucane Rd and Delancey St, once the printing hall for Fairfax Media and the headquarters of Queensland Country Press.

Concept plans show the hospital fronting Finucane Rd, with other health facilities and residential care buildings stepping down toward nearby housing areas.

One element of the approval likely to attract attention from commuters is the confirmation that developers will be allowed to construct a new intersection directly onto Finucane Rd.

That road is one of the main traffic corridors through Redland and already carries heavy daily traffic between Capalaba, Cleveland, and southern bayside suburbs.

However, approved plans do not change the speed limit on Finucane Rd, which are currently 70km/h.

The new intersection could lead to slower traffic and additional delays for motorists.

The issue is particularly sensitive given the Department of Transport and Main Roads previously floated a plan to reduce the speed limit along sections of Finucane Rd to 60 km/h.

That idea triggered strong backlash from motorists and was eventually withdrawn late last year.

The hospital proposal has been years in the making.

Developers behind the Hub68 medical precinct first revealed ambitions for a major health and research hub on the site in 2018, describing it as a “centre of excellence” that could transform healthcare access across the city.

The Cleveland Private Hospital developers are Dr Craig McCombe, former ALP MP Michael Choi, and local newspaper owner Warren Pryde.

The founder of the project businessman Steve Lambourne has left the project to develop his own allied health medical centre adjoining the Redland Hospital in Weippin St.

Commercial director Warren Pryde said the vision for the project was to build a stronger, healthier, and more connected Redland.

“The ministerial designation is a major step forward in realising this vision,” he said.

“Currently, Hub68 plays a vital role in the region’s healthcare landscape, delivering a comprehensive range of medical services that are accessible and conveniently located.

Planning material estimates construction of the hospital alone could cost about $480 million, with the total value of the broader project reaching as high as $750 million.

Early consultation with nearby residents raised concerns about traffic impacts and the scale of the proposed buildings near existing homes.

Residents, including Anna and Tony Fruean-Wells of Ormiston, Natalie Garvin, and David and Silvia Cragg, also urged developers to protect vegetation on parts of the site long used by wildlife, including koalas.

Despite those concerns, the ministerial designation now formally reserves the land for hospital, healthcare, and education infrastructure.