Mr Baillieu says the Royal Victorian Eye And Ear Hospital (RVEEH) currently has a cramped emergency department and inadequate facilities.
"The RVEEH has more than 46,000 emergency department presentations a year and more than 13,000 hospital admissions, yet (Premier) John Brumby has failed to fund this hospital to meet future demand," he said on Tuesday.
"Victoria's growing and ageing population will place even greater pressure on specialist services provided by the RVEEH to treat an increasing number of Victorians with glaucoma, cataracts and macular degeneration."
The upgrade would include a new emergency department, expanded teaching and research facilities and extra outpatient capacity.
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The hospital delivers more than half of general eye surgery in the state, 90 per cent of specialist eye surgery and nearly all of Victoria's public cochlear implant surgery.
$900 surplus in Victorian coffers
The next Victorian government will have a surplus of almost $900 million to play with over the next term, new treasury figures show.
The pre-election budget update, released by the Department of Treasury and Finance on Tuesday, predicts a healthy surplus over the next four years.
The surplus for 2010/11 has been revised down since the May budget from $872 million to $635 million.
It is forecast to increase to $843 million in 2011/12, steadily increasing to $895 million in 2013/14,
Gross state product is expected to grow by an average of three per cent over the forward estimates, while the unemployment rate will hover around 5.25 per cent.
"The economic outlook for Victoria is generally positive, although there are a number of short-term risks," the treasury report said.
"These include a prolonged and uneven global economic recovery, rising inflationary pressures, a high Australian dollar and a high terms of trade.
More than 2,000 on waiting list
More than 200,000 people are on outpatient lists for treatment in Victorian hospitals, new figures show.
The figures, obtained by The Age under Freedom Of Information from 16 of Victoria's 32 major hospitals, showed 203,584 people were listed as outpatients by May this year.
This list is far longer than the 40,000 people on the government's official elective surgery waiting list,
People waiting for consultations or procedures not admitted to hospital are defined as outpatients, but the data is not officially recorded or declared.
Some patients have waited more than five years for eye care, four years for allergy treatment and three years for problems including knee reconstructions, the figures showed.
Opposition health spokesman David Davis said the data was evidence the Labor government kept secret waiting lists to hide its mismanagement of the health system.
"John Brumby was hoping that his government could ride out the election campaign without his secret waiting lists becoming public," Mr Davis told The Age.
The figures arose a day after Premier John Brumby announced a four-year, $1.5 billion scheme to cut elective surgery lists, including the recruitment of an extra 2,800 doctors, nurses and health professionals if his government is re-elected.
Health Minister Daniel Andrews accused the coalition of "playing cheap politics rather than offering any real action to ensure more people have access to outpatient appointments"
