The old Bulli Hospital was "built by the community, for the community" and Keira MP Ryan Park wants the NSW Government to hold off on plans to sell it.
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Mr Park used a parliamentary address on Wednesday to urge NSW Health Minister Brad Hazzard to wait until the new Bulli Hospital and Aged Care Centre was up and running to see if the old site - across the road - was required.
"I am concerned at the government's immediate insistence to sell off the old site," he said. "I strongly urge the government to hold off and wait and see how the new hospital goes.
"I am not convinced that there is sufficient parking, and the old site could easily be used for additional parking.
"I say to the minister and the government there is an opportunity to hold off selling this asset until we know how the new hospital works, we know the needs of the local community and how the hospital interacts with an already congested part of the northern suburbs."
Mr Park, Labor's health spokesman, said if the site was sold, the funds must be reinvested in health facilities across the local health district.
"It is a district that is under enormous pressure. Its emergency departments are under enormous pressure. Its mental health wards are under enormous pressure. Its waiting list for elective surgery is at record levels," he said.
"Given that the only reason the government has this facility to sell in the first place is thanks to the money of local families from many years ago, please make sure the money is reinvested in the community."
During his private member's statement, Mr Park outlined the hospital's "proud history".
Thanks to the efforts of local miners and their families - who sacrificed some of their wages - and community members who held fundraisers, Bulli Cottage Hospital officially opened in 1893.
Growth continued for several decades, yet cuts to services started in the '80s and in 2012 the emergency department was closed.
Mr Park acknowledged the hospital had been "neglected by governments of all political persuasions" over the years. However he said the community was eagerly awaiting the opening of the new hospital.
"I cannot stress enough how important it is for the government to ensure that the urgent care centre - not an emergency department - is properly resourced and staffed and people are informed of what it can and cannot do," he said.
"Historically, when there has been a shortage at Wollongong the first facility to close is Bulli Hospital.
"The government needs to ensure there are sufficient staff in the local health district for both to be properly staffed."
The new $50 million centre is a collaboration between the Illawarra Shoalhaven Local Health District and IRT - with the NSW Government investing more than $36.9 million.
ISLHD executive director infrastructure development Suzanne Harris said construction was now complete, with builders undertaking final fit-out.
"The district is finalising operational plans and timing ahead of the move to the facility," she said.
"District staff have started their induction and orientation into the new hospital.
"In the meantime, it's business as usual for the existing hospital, including the Urgent Primary Care Centre.
"... Once the new hospital is commissioned, the old Bulli Hospital site will be decommissioned."
Ms Harris said the district would continue to work with the NSW Ministry of Health on plans for the existing site.
