The State Government and Department of Planning have approved an extra storey to be built on top of a new building at Newcastle Private Hospital.
It will allow for 15 new beds and an additional operating theatre, bringing the total up to 196 and 10 respectfully.
Parliamentary Secretary for the Hunter, Scot MacDonald praised the announcement, saying "these extra beds and additional health infrastructure will assist the health system to meet demand and provide timely treatment."
"The Hunter community is fortunate to have a mix of high quality private and public health providers."
The plan also included an elevated pedestrian link between the existing Kingston and Croudace Buildings.
The original plan, back in 2010 approved a six storey building on top of a three stroy parking lot, that total has now been increased to seven.