Goulburn continues to develop. A new fever ward is constructed at the Sloan Street Hospital in 1880, however by 1883 the site is struggling to meet the needs of the community and permission was sort to sell the property with the proceeds used to acquire land for a new hospital.
Five acres of land on Goldsmith Street adjacent to the then proposed school site and agricultural showground is set aside for a new hospital. The site is fenced and planted with a hedge of Hawthorn and some trees.