Workers at Westmead Hospital in Sydney's west have been subject to a significant increase in aggression from patients, including one high-profile incident where multiple security guards and a nurse were injured when a 39-year-old patient allegedly slashed at staff.
In the past five years, the hospital has also experienced a 31-per-cent increase in presentations where a patient is experiencing mental health or behavioural issues.
These issues are sometimes related to substance abuse and can be exacerbated in an emergency department.
"They're here on the worst day of their lives and often you're constrained by what you can offer," local nurses union branch president Nick Howson told reporters on Thursday.
But a new six-bed unit could help improve mental healthcare, keep staff safe, and reduce waiting times in the emergency department.
It will be better suited for patients who are at risk of becoming aggressive or agitated and will provide a secure environment to help those experiencing distress.
"It's good for them to have that space to de-escalate and receive the care they need," Mental Health Minister Rose Jackson said.
"It's actually just good for everyone who comes into the Westmead emergency department."
The problem is not unique to Westmead Hospital, with a NSW Nurses and Midwives' Association report revealing 88 per cent of nurses, midwives and carers had experienced violence in the previous year.
Similar initiatives already introduced at places like Nepean Hospital and Prince of Wales Hospital have helped reduce the need for sedation and restraint, while cutting stay length and waiting times in emergency departments.
But a further rollout would depend on the space available at other hospitals as such units require a separate area to care for these patients, Ms Jackson said.
Construction on the unit will start in August with expected completion in early 2027.
Labor has contrasted this announcement with decisions made under the previous coalition government, with NSW Health Minister Ryan Park saying they had failed to deliver enough beds or recruit enough staff in Western Sydney's hospital system.
But opposition health spokeswoman Sarah Mitchell noted NSW residents are waiting longer to receive hospital care and said the government had not delivered on its promised 600 additional hospital beds in the area.
"Ryan Park and Rose Jackson are politicising our failing health system again," she said.
