The Government has granted approval to the Midland Health Board to accept a tender for the building of a new hospital on the existing site of the Tullamore hospital in Co Offaly.
The new building will be three times the size of the existing hospital and will cost between €140 and €150 million. The project will take four years, according to the Minister for Health, Mr Martin.
He said the new hospital would provide 72 more beds as well as departments for day patients, radiology, Accident and Emergency and out-patients.
It would retain its responsibility for providing orthopaedic and ENT services for the entire midlands region.
Up to last Thursday, there were still doubts that the new hospital would go ahead.
Mr John Cregan, Midland Health Board acting chief executive said yesterday: "The message can now go out loud and clear that the board will have its new hospital at Tullamore," he said.
Site work to the value of €1.75 million has already begun to provide car parking and temporary buildings and the tender will be formally finalised within weeks.
Yesterday in Tullamore, the Minister for Foreign Affairs, Mr Cowen said the approval of the "state of the art" hospital would reduce patient flows to other regions and would have a positive impact on service pressures in the eastern region.
"Subject to some technical checks and agreements, I am satisfied that there is now no obstacle to the commencement of construction on the hospital at an early date," he said.
A total of 296 beds will be provided in the new hospital - 233 for in-patients and the remainder for day patients receiving treatment under various specialities.
There will be six operating theatres in the new hospital, compared with four in the existing facility.
Some 12 rooms will provide radiology procedures including X-ray, mammography and MRI scans.
Accident and Emergency facilities will be expanded from three treatment/examination rooms and one plaster room to five major treatment rooms, three treatment/examination rooms and eight cubicles, two plaster rooms and segregation, observation and resuscitation areas.
The number of out-patient consulting rooms will be trebled to 22, while the day unit will have 45 beds, compared with eight beds in the existing hospital.
Mr Martin said the project was "further evidence of this Government's commitment to develop our health services into the world class system which the people of Ireland deserve."
He said the decision to build a new hospital on the existing site would ensure there was minimum disruption for patients, relatives and hospital staff during the development.
The existing hospital is a listed 1937 Michael Scott building.
When the new hospital is built, the Scott building will become the Midland Health Board's headquarters and will also house an education centre.
