That's more than double the current budget.

A $20 million commitment has been secured from the state government for a 'refurbishment' of the hospital, which was confirmed in the 2020-21 NSW Budget, but local MP Adam Marshall says he is firmly of the view more needs to be done to completely rebuild and re-shape the precinct.

Mr Marshall met with Health Minister Brad Hazzard to push for an increase in the funding allocation, to $50 million.

"It's become increasingly clear to me that what we really need as a brand new hospital and health precinct in Glen Innes that is fit-for-purpose for the delivery of modern healthcare to the community," Mr Marshall said.

"This is especially important in light of our desperate need, like so many regional communities, to attract and retain more doctors.

"We need to ensure a new hospital is constructed and includes space for GP clinics so that practitioners can actually be based and work out of the hospital, providing both primary and acute care to hospital patients and the general public.

"It also makes sense to co-locate a new ambulance station on the hospital grounds as well as provide modern accommodation onsite for visiting specialists, nurses of other medical staff.

"Unfortunately, none of this can happen within the $20 million already allocated - we need more funding, it's that simple.

"The Glen Innes community deserves the very best in a new health precinct and anything less would be seen, quite rightly, as a very expensive band aid being applied to a very old and tired hospital building."

Mr Marshall said the recently completed Clinical Services Plan for the project set out a bold vision for a first-class hospital and health precinct at Glen Innes that combined primary and allied health services.

"We need to be thinking big and with the long-term future of healthcare in mind and the timing is now critical with the hospital masterplan being drawn up."