In 1878 the Queensland Government raised a loan of £5,000 to build a new hospital in Warwick. However, it was not until September 1880 after considerable local agitation that the government called for tenders to build the hospital, resulting in a contract awarded to A.W. Doorey to build the hospital. However, by February 1881, tenders were being called for again, and in April 1881 the Queensland Government announced the hospital would not proceed. In June 1881, the government indicated that they would proceed if the local financial subscriptions to the hospital were increased. Tenders were called again in February 1882 resulting in a contract with Messrs Wallace and Gibson in March 1882. Finally on Thursday 19 June 1884, the patients were moved from the old hospital to the new hospital in Locke Street.