THE Health Minister has warned debate about the future site of a new Cairns hospital could drive up the price of land.

Stephen Robertson made the comment after Cairns Chamber of Commerce former president Bob Norman said he did not believe the minister was "wedded" to the idea of building a hospital on the city's southside.

Mr Norman, who has been appointed chairman of a business and medical lobby group whose goal is to get a better health deal for Cairns, said chamber executive members had questioned the minister about alternative sites after he addressed their monthly meeting on Tuesday.

"My suggestion to the Minister in private was, that while the Edmonton area is going to be the nappy valley, don't you think the northern beaches in the future will see a lot more units and senior citizens and tourists?" Mr Norman said.

"In reality, aren't the people with grey hair going to be the most likely to be health vulnerable in years to come?

"It's the baby boomers who will be using a new hospital the most."

Mr Norman also suggested the Cannon Park racetrack at Earlville as an ideal central site for a new hospital.

The State Government earlier this month announced it would buy land on the southside to meet long-term health needs including a new hospital but would spend $450 million upgrading the existing hospital site to meet short-term demands.

Mr Robertson said ruling sites in or out at this stage risked compromising commercial negotiations.

"Interested landholders should contact Queensland Health and the final location will be selected on its merits by professional infrastructure planners," he said.

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