South Gippsland Hospital (SGH) is a public small rural health service, which combines an acute hospital with a community care service that operates from the Community Health Centre, Banksia Centre, and within people’s homes. Together with the doctors of Foster Medical Centre, SGH serves the community of Foster, Corner Inlet, Wilsons Promontory and surrounding areas.

SGH officially opened in 1952, the Community Health Centre opened in 1983 and SGH has had full use of the Banksia Centre since 2022. The first hospital in Foster was established by Sr Margaret McClure as a private hospital on the corner of Nelson and Court street. A second private hospital was established on the corner of Main and Nelsons streets by Sr Emily Hoe in 1907, until it became a public community hospital in 1937.

Construction of the new operating theatre and refurbished maternity suite was completed in 2020, which coincided with the refurbishment of the Banksia Centre. Since then, significant upgrades to staff and patient amenities, as well as infrastructure, equipment and the grounds has ensured that SGH maintains a safe and contemporary environment for all.