A Queensland Government-owned and operated pathology laboratory will provide vital pathology services on site at the new Queensland Children's Hospital when it opens at South Brisbane in 2014.
Premier Anna Bligh said the laboratory will be located in the Queensland Children's Hospital academic and research facility, next to the new hospital.
"The Queensland Children's Hospital pathology laboratory will be a state-of-the-art facility, equipped with the latest technology to serve the hospital when it opens in 2014," she said.
The staff and services of the Mater Children's Hospital and Royal Children's Hospital will be merged under one roof at the Queensland Children's Hospital in 2014.
Both hospitals are working together to design and plan a new hospital for children, young people and their families.
"The Queensland Children's Hospital will be a hospital not just for today, but to meet the health care needs of Queensland children and young people into the future," Ms Bligh said.
Deputy Premier and Minister for Health Paul Lucas said Queensland Health staff would manage and operate the laboratory, which was expected to process more than 298,000 tests a year.
Children's Health Services chief executive officer Dr Peter Steer said deciding on the pathology service provider for the Queensland Children's Hospital had been the result of many months of careful consideration.
"Over the next four years we will continue working closely with staff from the Mater and the Royal children's hospitals to design and plan a new Queensland Children's Hospital and services that meet the needs of children, young people and their families," Dr Steer said.