"In the last year it has had an 11 or 12 per cent increase in budget," he said.

He also cited the hospital's recent success in recruiting new doctors for 2012.

Mount Isa health district would have even more autonomy with the new governing structure.

From July Mount Isa would become a stand alone health district, one of 17 health networks in the state to have an expertise-based governing council.

"There will be local management of all the health services in Mount Isa through this governing council," he said.

The proposed radical restructure of the corporate office of Queensland Health would also better serve regional areas like Mount Isa, the Minister said.

Half of the board that would manage the new agency, Health Corporate Services Authority, would be drawn from the governing councils.

"So the health networks will have a big say in procedures which should lift the performance of the corporate office," he said.

Mount Isa's executive director of medical services Greg Coffey said the new building was a great opportunity for staff and a huge morale-booster.

"It has increased confidence in government provided services and the infrastructure needed to make those services happen," he said.

Dr Coffey said Mount Isa Hospital staff performed 2,112 elective surgical operations last year, an 18 per cent increase on on the previous year.

"That has been achieved by a consistent surgical team with a permanent surgeon rather than locums coming and going," he said.