The Papua New Guinea Health Minister, Sasa Zibe, says the re-organisation of health services in Port Moresby will mean the development of at least four new hospitals.
Mr Zibe says Port Moresby General Hospital cannot cope on its own with the soaring population levels in the National Capital District.
He says several suburban clinics will be brought up to secondary hospital standard.
"They will do certain of the things but some of the things that are referred will come to Port Moresby General Hospital. So, for example, Port Moresby General Hospital would not get the outpatients. It would only be concentrated on specialised treatments."
Sasa Zibe there would also be a hospital built outside of the city to cater for the rest of Central Province.
He says the aim is to reduce the burden on Port Moresby General, so it can focus on its core functions.
He also wants an end to doctors taking managerial positions in the hospitals.