An additional $30 million will be spent on the Glen Innes Hospital redevelopment, which was initially allocated $20 million.
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State MP Adam Marshall made the announcement on Friday, after he lobbied the Health Minister Brad Hazzard last year to have the project budget more than doubled.
The extra work will include two clinic rooms, offering space for medical practitioners, including GPs, to work out of the hospital.
Mr Marshall said the announcement gives NSW Health Infrastructure the financial freedom to deliver on the community's aspirations for enhanced health services and facilities for the region.
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"This is the breakthrough Glen Innes residents have been fighting for," Mr Marshall said.
"It's a very exciting day for the community, particularly our hard-working health staff."
Since the initial $20 million funding allocation in the 2020-21 NSW Budget, Mr Marshall said there had been a monumental amount of planning go into defining what health services Glen Innes Hospital required to meet the health needs of the community.
"It became obvious late last year that $20 million was not enough money to get the job done - to include everything to meet the health needs of the community now and well into the future," Mr Marshall said.
"We only get one shot at this redevelopment and I didn't want this critical project constrained by an artificial funding cap and see essential components cut out and dropped off the plans."
While lobbying the health minister last year, Mr Marshall was pushing for a new ambulance station to be constructed on the hospital grounds.
On Friday Mr Marshall said this was something he still wanted included and said he had requested that an appropriate location on the site be considered in the master plan.
"The old ambulance station on Bourke Street is scheduled for refurbishment, so it makes sense that a location for a new premises is included on hospital grounds," he said.
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