Nambour Hospital on Queensland's Sunshine Coast will get an $86 million redevelopment following claims it has been overlooked for funding in recent years.
The state government has announced the detailed business case for the refurbishment, which will expand the hospital's emergency department and mental health unit.
It follows accusations the facility had been overlooked for funding in recent years due to the opening of the nearby Sunshine Coast University Hospital.
Health Minister Steven Miles denies they have ignored Nambour Hospital, pointing out the refurbishment was flagged in the 2016/17 budget.
Mr Miles says the role of Nambour Hospital has changed since the opening of the nearby hospital but it will continue to provide a range of clinical services.
"Nambour Hospital plays an essential role in providing healthcare to the growing Nambour population," he said on Wednesday.
The Liberal National member for Nicklin, Marty Hunt, said while he welcomed the announcement, it had been delayed for too long.
"It's taken three years to do a business case and we need this upgrade to happen as soon as possible," he said.
"The people of Nambour have been patiently waiting while our hospital was put on life support for this funding to finally be approved."
The upgrade will increase the hospital's emergency department to 31 spaces and its mental health unit to 44 beds.
It will also include a new Same Day Rehabilitation Unit, as well as smaller upgrades and revamps to other departments.
The refurbishment is expected to get under way at the start of next year, with a planned completion date of December 2022.