A controversial decision to rename a Melbourne hospital in honour of the Queen is the centrepiece of a $1 billion election promise.

Premier Daniel Andrews says, if re-elected in November, his government will redevelop and expand the Maroondah Hospital in Ringwood East to accommodate an extra 9000 inpatients per year.

"The new Queen Elizabeth II Hospital will rebuild and refurbish the Maroondah Hospital from the ground up," Mr Andrews said on Sunday.

The Labor government pledged to spend up to $1.05 billion on the new hospital, which would include a new emergency department, operating theatres, day-procedure facilities, specialist care spaces and two six-storey inpatient towers, adding 200 extra beds.

Construction would start in 2025 and create 2500 extra jobs.

Mr Andrews said the name change, from an Aboriginal word to that of the Commonwealth's longest reigning monarch, was "a mark of respect to her unwavering commitment to healthcare and our community".

"The Queen was a longstanding supporter of Victoria's healthcare system," he said.

"As the patron of the Royal Melbourne and the Royal Children's hospitals, she demonstrated her devotion to patients and their care whenever she visited their bedsides."

According to the Maroondah Council website, 'Maroondah' is an Aboriginal word that means "throwing leaves".

Her late Majesty Queen Elizabeth II already has hospitals named in her honour in Brisbane and Adelaide, along with a medical centre in Perth.

The announcement comes a day after Victoria's opposition promised a $400 million upgrade to Maroondah Hospital, if it wins the election in November.

Opposition Leader Matthew Guy slammed the government for its announcement, stating he didn't believe the hospital would be built.

"If he really wanted to put $1 billion into Maroondah Hospital, he's had eight years to do it - he's been here a long time," Mr Guy told reporters.

"I bet if he's elected he'll never build it."

Mr Guy, on Sunday, also announced $108 million towards a new clinical medical research centre at Box Hill Hospital, which, like Maroondah Hospital, is part of the Eastern Health network.

The funding will include an 800-space low-cost car park to accommodate patients and staff - with at least 400 spaces dedicated to the latter.

The opposition previously stated it would scrap part of the Suburban Rail Loop and redirect $35 billion earmarked for the project into the health system.