On Friday Mr Ward and the Liberal candidate for Shellharbour Mark Jones met outside the hospital to launch a petition, which they have invited community members to sign to show support for the project.

The pair also sent a co-signed letter to NSW Health Minister Jillian Skinner calling on the state government to fund the upgrade.

"We are taking the fight to the government for the expansion of Shellharbour Hospital as set out in the Shellharbour Hospital Services Plan 2013-2023," Mr Ward said.

"The plan, released by the Illawarra Shoalhaven Local Health District, will deliver everything from paediatric to geriatric care - the gamut of services required to service a growing population.

"Under the hub and spoke model outlined in the 10-year plan, Shellharbour will be a major hub for the southern Illawarraso we need an updated facility just like the government is delivering at Wollongong Hospital."

Mr Ward said the $6.7 million allocated in this year's state budget had seen construction begin on Shellharbour Hospital's ambulatory care unit.

However he hoped to see the rest of the upgrade started in the next term of government.

"This hospital has excellent staff and brilliant doctors and nurses," he said.

"But they are struggling to keep up with the demands of a growing population even now - that's why they need this investment."

The Kiama MP has a habit of lobbying government to fund projects in the region.

"I've had a lot of success petitioning the government in the past," he said.

"It's helped keep the aeromedical service in the region, helped us get a PET scanner for Wollongong Hospital and recently it's helped keep the 4.24pm train service from Central to Kiama on track."

"Petitions are a great way to give the public the opportunity to put their case to the government and [Mr Jones] and I will again be collecting signatures in support of this hospital upgrade to put pressure on the government."

The upgrade of the hospital - which was built in the mid 1980s - will double its capacity from 150 to 330 beds and will include 24-hour emergency surgery and an intensive care unit.