Brisbane's Lady Cilento Hospital has been renamed to clear up supposed confusion about whether it's a public or a private facility.
Queensland Health Minister Steven Miles announced it will be called the Queensland Children's Hospital.
"This process started with a request from the doctors," Mr Miles told reporters on Friday.
Medical practitioners had raised concerns about the impact of the name on their involvement in international research projects and a survey showed most parents didn't know it was a public facility.
The hospital was originally named after Phyllis Dorothy Cilento, a pioneering doctor, who Mr Miles says will now be honoured in another way.
"It is the government's sincere wish that we can reach an agreement with (her family) about an appropriate alternative to properly recognise Lady Cilento and her contribution to Queensland," he said.
The estimated cost of changing signage at the hospital is expected to be under $500,000, funded by the Department of Housing and Public Works.
Stationery and uniform changes will be implemented over time, as needed.