With more aged-care beds, an expanded 24-hour urgent care unit and priceless bay views from its prized hilltop location, the highly anticipated $10 million Lorne Hospital has been officially opened.

Premier Steve Bracks, who was joined by Health Minister Bronwyn Pike for the opening, said the multi-million dollar upgrade of the facility would provide enhanced health services for the people of Lorne well into the future.

'Its position may be a real estate agent's dream but, much more importantly, this new hospital is a dream come true for the people of Lorne,' Mr Bracks said.

'The new $10.3 million facility will mean people and families in the area will be treated more quickly, in an environment that would be the envy of any health provider in the world.

'With aged care an important feature of the hospital's operations, the recuperative views from the new upper level, greater use of natural light and the provision of outdoor balconies for some rooms will all contribute to making this hospital a better place for patients and staff alike.'

Mr Bracks said the two-level building would house patient wards, acute and aged care on the top level with the lower level providing facilities for primary health care—including rooms for visiting specialists, physiotherapists, podiatrists and doctors, as well as administrative offices.

'Many people from the area, including staff and community advisory groups, contributed to the design and dˇcor of the hospital—to fit in with the local environment,' Mr Bracks said.

Ms Pike said the new facility would accommodate additional high-care nursing home beds, up to 20 from 15, and would also be better equipped to provide a more efficient and effective 24-hour urgent care service.

'Having a bigger and better organised area dedicated to providing a 24-hour urgent care service will make it easier and quicker to provide initial treatment to patients who come to the hospital and need immediate stabilisation.

'This extra capacity will make a real difference in peak holiday times when Lorne traditionally faces an influx of visitors, many who end up needing some form of medical assistance.

'Today is the culmination of many years of planning and community involvement and the result is a great new facility the community can be proud of,' Ms Pike said.