Construction is set to start on a $48.7 million redevelopment of the 60-year-old Swan Hill District Hospital in north-west Victoria.
The state government announced last year it would spend $18.7 million to redevelop the emergency department (ED), with the federal government to spend $30 million.
A temporary pathology lab and cafeteria at the hospital site will be built ahead of major construction beginning next year.
The new ED, expected to be operational by 2025, will boast larger waiting areas, a four-bed short-stay unit, and mental health treatment rooms.
Victorian Health Minister Mary-Anne Thomas said rebuilding the ED would ensure residents could access faster emergency care.
"This multi-million-dollar project will give locals peace of mind that world-class healthcare is on their doorstep, when they need it," she said.
"We are proud to be delivering this important project for Swan Hill and surrounding communities."
The hospital's acting chief executive Chloe Keogh said it had been a "long journey, and the community probably thought it wasn't really going to happen".
Entire hospital revamp needed
The redevelopment is the first of a five-stage plan to modernise the entire Swan Hill hospital, but the state government has so far only committed funding for the new ED.
Swan Hill Rural City councillor Les McPhee, who led a community campaign for a new hospital, said he would continue to lobby for a complete rebuild.
He said making enough noise and becoming a "squeaky wheel" had led to the build of new ED, "which is great".
"We hope it continues through to the next stages, otherwise the wheel will start squeaking again."
Mr McPhee said he had received emergency treatment at the hospital and, while the staff did a terrific job, there were clear signs the current building was "not fit for purpose".
"The wards don't have ensuites. There is paper in the window [frames] to stop them from rattling," he said.
"Privacy is the biggest issue. You can hear what is going on with other patients."
He said a rebuilt hospital would also make Swan Hill a more desirable destination for young healthcare workers.
"It is difficult to attract new staff and doctors to work here because they would prefer a newer hospital, not the old dilapidated one we have," Mr McPhee said.
"It's basically the old baseball theory: build it and they will come."
