The facility will be designed to provide residential accommodation for babies and their families who are in need of support.
The State Member for Shepparton said the region's level of disadvantage, along with the high rate of child protection cases and family violence incidents, highlighted the need for the unit to be established.
With many other regional Victorian areas have such units, Ms Sheed said it was time the State Government backed one in Shepparton.
“It’s really important we have a facility like this,” Ms Sheed said.
“All our figures and demographics support us (Shepparton) in establishing a centre of this kind."
The facility would give parents a place to reside while receiving help to care for their baby’s needs, to seek medical treatment and support, and to get help connecting with their baby.
Ms Sheed said establishing the facility had been on her agenda for the past five years.
“Caring for a baby can be challenging for anyone in the community, no matter what your income bracket is,” she said.
“Having a few beds somewhere in a hospital is not the vision of those of us who have been on this case for years.
“It’s a standalone unit away from the hospital that recognises there’s a place for really good support.
“The idea is to have a live-in area that people can stay for a week or two weeks if need be.
“But we need the government to commit to operate it, have professional people working in it and provide the ongoing funding for it."
Goulburn Valley Health chief executive Matt Sharp said the hospital was working with partner organisations regarding a concept design for the unit to propose to the State Government.
“We will continue to work with the State Government to ensure that the best possible care is provided to the Goulburn Valley community for mothers, babies and families,” he said.
Goulburn Valley Health Foundation director Carmel Johnson said the foundation backed Ms Sheed's project idea and would consider contributing to the initiative.
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