The remote Paraburdoo Hospital will be upgraded as part of a new approach to tackling the state government's failing search for construction contractors in the Pilbara. 

Paraburdoo, 1,500km north of Perth, is a Rio Tinto mining town worth billions of dollars to the state economy.

On Wednesday, WA Premier Roger Cook said including Paraburdoo Hospital in a combined tender with planned upgrades to the nearby Tom Price Hospital would help fast-track the original project.

"Developing public sector infrastructure is very difficult in these remote locations," Mr Cook said.

"This [announcement] means we will be able to get the construction companies engaged as part of an alliance project."

Rio Tinto has committed $20 million funding for upgrades to Paraburdoo Hospital, which will be added to its previous commitment of $20 million for Tom Price Hospital.

Despite the additional hospital project, the state government has not increased its own funding contribution of $12.8 million.

The Pilbara's major mining union believes funding may need to increase, given how the building market has changed since the project was originally costed.

"I think the costs will continue to blow out," Western Mine Workers Alliance organiser Shane Roulstone said.

"But we're reassured by the premier's announcement today that if there are additional costs, they're open to that [and] they'll sit down with the contractors.

"I'm sure if there are some additional costs they'll work through that in a constructive way."

Community frustrated with upgrade delays

Upgrades to the Tom Price Hospital were announced as part of an election promise in 2021, during which the joint funding between the state government and Rio Tinto was put forward.

But the project stalled, with little interest from contractors to take on the job.

The delay has frustrated local residents and the Shire of Ashburton, which encompasses both Paraburdoo and Tom Price.

Earlier this year, some residents told the ABC the infrastructure at Tom Price Hospital was so outdated it was a public health risk.

The state's country health service has always denied the hospital's services and infrastructure are inadequate, given it services a relatively small population.

Shire claims Paraburdoo upgrade as a win

The Shire of Ashburton has this year repeatedly attacked the state government for failing to make good on its promise for upgrades to Tom Price Hospital.

More than $100,000 has been spent on a media campaign that has seen large electronic billboards go up in Perth, and full-page ads in the West Australian newspaper. 

Common across all of the campaign's ads has been the slogan "Band-aids won't fix broken promises".

Shire of Ashburton president Audra Smith said Wednesday's announcement about funding for Paraburdoo Hospital vindicated the expensive campaign.

But Mr Cook denied the campaign had any impact on the decision.

"No, not at all — I'm on the record as saying that they've got better ways they could be spending their ratepayers' money," Mr Cook said.

To be built 'this decade': Premier

Speaking outside Tom Price Hospital, the premier said the government would be open to contributing further funds to the projects if necessary.

The combined tender Tom Price and Paraburdoo projects tender will be released by the state government next month.

It is expected a contract will be awarded in November, and that construction will begin soon after.

The state government's announcement comes just days after the WA Liberals promised to finish the Tom Price Hospital project before May 2029.

Mr Cook said he doubted the Liberals would be able to deliver the project but that the 2029 timeline was realistic.