All funds raised from the sale of the old Bulli Hospital must go back into health services within the district says Keira MP Ryan Park.
As the new Bulli Hospital Aged Care Centre of Excellence nears completion across the road, Mr Park said he'd been advised by Illawarra Shoalhaven Local Health District management that the current site would soon be "surplus to requirements".
The LHD would therefore begin the process of seeking Ministry of Health approval to sell the site, and would request that proceeds be used to fund local health initiatives.
"I've also written to Health Minister (Brad Hazzard) to ask him to ensure that all proceeds from the sale stay in the health district," Mr Park said.
"We know there's enormous pressure on Wollongong Hospital's emergency department, and on Shellharbour and Shoalhaven hospitals too, so we need those funds to be reinvested into local health services."
The $50.4 million project is on track to be complete by the end of the year, with the facility expected to be fully operational by 2020.
The centre, which will include a hospital and a 60-suite residential aged care centre, is being built by NSW Health and IRT Group as part of a public/private partnership.
NSW Health has provided $19.3 million towards the hospital project; an additional $14.5 million came from the Restart Illawarra Infrastructure Investment Fund and IRT is investing $16.6 million.
In the new build, there'll be parking for around 60 vehicles.
Mr Park, Labor's health spokesman, said he would also be asking the LHD if they could explore using some of the current site, on Hospital Rd, for additional parking.
"Parking - due to the location and narrowness of the road - is always going to be a problem given the expansion," he said.
"So I'll be asking the health district if they could explore keeping at least part of the land for enhanced parking."
Mr Park will also be meeting with Wollongong council to talk about the options for the old site.
"I want to make sure there's a clear and transparent consultative process about the future use of this land," he said.
"For instance it could be a site that lends itself to some affordable housing."