The newly elected West Australian government has put the contracts for the Fiona Stanley Hospital and Perth Children's Hospital ICT roll-outs on a list of 26 high-profile projects to be investigated as part of a politically charged inquiry into its predecessor's handling of the state's finances.

WA Premier Mark McGowan and treasurer Ben Wyatt this week released the terms of reference for the inquiry, which will look at the decision-making processes, risks, contract terms and financial consequences for some of the state's largest projects, including Fiona Stanley Hospital – and its much criticised Serco contract – the troubled Perth Children's Hospital, which has lead in its water supply, the St John of God Midland Public Hospital, and the major IT procurements of the Department of Health.