The Queensland government will jointly fund a $62 million expansion of a hospital east of Brisbane with plans to eventually turn it into a major metropolitan hospital.
Health Minister Steven Miles says the Redlands Hospital project will include a new 32-bed ward and six-bed intensive care unit.
It will be jointly funded, with the state providing $32 million and federal government $30 million.
Redlands Hospital employs 900 staff and has 172 overnight beds. It admitted almost 86,000 patients in 2017.
Dr Miles says work will begin next year with a further $6 million funding allocated to planning a further expansion.
"Not only will this deliver world-class health facilities for the Redlands community, but this investment will support 179 construction jobs which is critical for our economic recovery," he said.
"As we unite and recover from COVID-19, we're investing in projects that support local jobs and help jumpstart the economy.
The hospital serves voters in the electorate of Redlands, one of the most marginal state seats, which Labor's Kim Richards holds by just 3.1 per cent.
"This is absolutely fantastic news for our Redlands community, much awaited. The news of the car park recently expanding as the enabler to do further works here is just great news," Ms Richards said.
"The Palaszczuk government continues to deliver for a Redlands community, particularly in the health services space."