Sixteen full-time equivalent staff have been recruited to Maitland Hospital emergency department's "short stay unit", enabling it to operate seven days a week.
The short stay unit, which opened in June, has been operating for four days a week.
NSW Health Minister Ryan Park said the unit "plays a critical role in easing patient flow throughout the hospital".
Mr Park said the staff boost showed the government's commitment to ensuring "access to timely and high-quality healthcare".
Maitland Hospital has faced criticism from the public and nurses for some time over staff shortages, waiting times and quality of care.
However, Maitland MP Jenny Aitchison said the hospital "continues to make great strides in providing high-quality care".
"The additional staffing and extended days of operation are making a real difference," she said.
She said this was "reducing the time patients spend waiting for treatment and easing pressure on our ED [emergency department]".
"This progress is a direct reflection of our dedication to improving healthcare for Maitland residents."
The government said the short stay unit had treated 438 patients in September, compared to 278 in June.
It added that the hospital had improved the time to start treatment across all triage categories by "up to six per cent" since the June opening.
Additionally, there was a 19 per cent improvement in patients being transferred from paramedics to ED staff within 30 minutes.
Before then, the hospital's performance was in decline.
In the April to June quarter, the percentage of patients starting treatment on time in the emergency category was 42 per cent, a fall of 15 per cent on the same quarter last year.
And the median time from arrival to discharge at the ED was six hours and 30 minutes in that quarter, the worst result on record.
This was also the worst result among 19 similar hospitals in the state and among Hunter New England hospitals.
Maitland Hospital acting general manager Jenny Martin said the hospital was "grateful for the ongoing patience and support of our community".
Ms Martin said the hospital was working to improve performance at the ED.
"The improvements we've seen in recent months reflect the hard work of staff and the benefits of extended operating days," she said.
"With full staffing capacity, we are confident that the ED will continue to improve wait times and patient experiences."
Mr Park said the improvement since June was due to "the efforts of our hard-working healthcare staff, who continue to meet the growing needs of the Maitland community".
Short stay units were designed to provide "a short period of ongoing treatment and observation of a patient's condition", helping them avoid an unnecessary hospital stay.
The government said it had spent $70 million on short stay units across the state, as part of its "ED Relief Package".
The government urged anyone with an illness or injury that's not life-threatening to call Healthdirect on 1800 022 222 for 24-hour health advice.
