The south-west has the highest incidences of patients with mental health conditions in the state.

South West Healthcare chief executive Craig Fraser thanked the Andrews Labor Government for the investment.

"This really is a game-changer for us," he said. "We are two hours away from the next mental health facility and three hours away from some of our specialist beds.

"Importantly, these beds mean that more people will get access to care closer to home, that we're able to treat people in the right environment and also means our hardworking staff get to work in a facility that actually is conducive to great practice.

"It brings in a contemporary model of care for us, but also takes a little bit more demand off the state-wide system which we know is under a lot of pressure."

The Warrnambool Base Hospital currently has 15 mental health beds.

"It takes our acute mental health beds from 15 to 20 which is a big difference," Mr Fraser said.

The region has again missed out on youth mental health beds, with the closest beds for young people located in Geelong.

It was a gap identified in the mental health royal commission findings.

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Minister for Western Victoria Gayle Tierney said it would be a "matter of time" before the issue was worked through.

"At the moment it's very important with this budget being the first after the royal commission to actually say we're going to put money into beds and to signal that regional Victoria was very much part of the story," she said.

"This investment will redesign the hospital's acute mental health inpatient unit improving the models of care and creating a dedicated are for vulnerable consumers including women, older people and of course, LGBTIQ+ community members as well.

"Health services particularly here at the Warrnambool Base Hospital are seeing an increase in demand for mental health care and support.

"This investment will mean more locals will be able to access the care they need, particularly those who are experiencing additional vulnerabilities.

"This of course on top of the $384.2 million investment made for the hospital in November.

"This is a real game-changer for people in the region who are affected by mental health issues."

Mr Fraser said more staff would be brought on in mental health services in the coming years.

The beds are expected to be delivered around March 2022.

The budget states $4 million will be spent in the upcoming 2021-2022 financial year on delivering the beds, with the remaining $6.8 million to be spent by the end of 2024.

"It's going to be an interesting build because we have to keep our mental health services running in this process and there's going to be some complexities around how we do that," Mr Fraser said.

"We have to minimise the disruption while we deliver that.

"There will be reconfiguration of our unit; the current unit was designed many years ago and we really want to change some of the things we think need to be improved, and also remodel."

The budget also delivers continued support for the HOPE (Hospital Outreach Postsuicidal Engagement) program at South West Healthcare.

A newn mental health clinical outreach centre will also be funded in Hamilton.

Delivering care after a hospitalisation, the service will help make sure regional Victorians are no longer falling through the cracks.

If you, or someone you know is in immediate danger, please call 000, visit your nearest hospital emergency or use any of the crisis helplines:

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