The hospital was previously operated by another provider and under their ownership, was closed last year.
The 34 patient-bed facility - now open - will predominately focus on the treatment of medical patients.
University Vice-Chancellor, Professor John Dewar said under the new agreement with Healthscope, the re-opened hospital will provide training opportunities for some University students.
"La Trobe University nursing and allied health students will benefit from the opportunity to undertake work placements across all of Healthscope Hospitals, providing them with the necessary workplace skills and experience required as part of their degrees.
"We are also working closely with other health service providers at the centre - including pharmacy, pathology, the GP clinic and physiotherapy - to ensure we maintain services for the benefit of students, staff and the local community," Professor Dewar said.
The agreement will give students around 13,000 clinic placement days in Healthscope's extensive network of hospitals and health services across nursing, midwifery and allied health disciplines.
Professor Karen Dodd said the placements were primarily in entry-level health disciplines, but the partnership would facilitate, (where relevant) post-graduate placements.
'This is our largest private health partnership and gives us access to some really high quality clinical placement experiences for our students.
'We intend to jointly establish two professorial positions, one in allied health and the other in nursing. These will be externally advertised and we will be going through an extensive national and international search for appropriate high level people to fill these positions.
'These roles will be embedded into HealthScope facilities and they will help strengthen our partnership and extend our research capacity in health,' Professor Dodd said.
Media;Catherine Garrett 9479 6565 / Image:La Trobe Nursing student Matthew Zammit