Premier Steven Marshall defending the decision not to renew leases on sites like the Old Wakefield Hospital.
"We've also got existing relationships with groups like the Calvary which already take patients from our local health networks in South Australia, so it's a very logical way to go, and they of course have the staffing," he said.
It's on top of 93 more beds announced in the public system yesterday.
AMA SA president Dr Michelle Atchison said 300 beds would be better.
"With COVID, people aren't in hospital for a short period of time, people are in the ICU for weeks," she said.
Mr Marshall said the new beds are part of a $123 million investment to expand the health system's capacity.
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