The nursery, officially opened last week, has grown from six cots to 20, which will allow the hospital to cater for 2500 babies a year, up from 1500.

Cathy McAdam, the hospital's head of paediatrics, said the upgraded nursery would enable the hospital to handle more complex pregnancies.

It also meant the hospital could care for sick babies who would otherwise need to be transferred to intensive care units, such as that at Monash Medical Centre in Clayton.

"Another beautiful feature are the parent 'rooming-in' rooms and lounge," Ms McAdam said. "These allow families to be very close to the babies and also sit and relax away from their baby's cotside."