Shellharbour Hospital's future site and other changes to the Illawarra's health services have been broadly welcomed, although nurses have voiced concern about how the state government will staff the new facility.
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Dr Geoff Murray looked forward to moving out of the "dilapidated" Port Kembla Hospital and into new facilities at Bulli Hospital.
"This is an announcement that's going to be strongly supported by all clinicians in this district, and I think it's fantastic news for all our future patients," Dr Murray said.
Longtime Dunmore Road resident Ian Waldron, who lived opposite the proposed site, said it was a perfect location for a new hospital, with good transport links and helicopter access if required.
"I'm happy that something's going to be done with it," Mr Waldron said.
He said he preferred a hospital to the housing development that was once proposed for some of the land.
Neighbours Levina and Stanley Elphick were also pleased with the decision.
"We need a decent hospital... It's going to be good for Shellharbour," Mrs Elphick said.
But there was some concern from the NSW Nurses and Midwives Association, members of which attended the site for Thursday's announcement.
"How are you going to staff it, Brad?" organiser Katrina Bough asked.
Ms Bough said emergency staff at Shellharbour Hospital were not coping with the number of presentations they were seeing already, and she was concerned that the government could not guarantee the required increase in workers at the new hospital.
The new Shellharbour Hospital and associated projects were the result of bipartisan work involving MPs on both sides of government, including Anna Watson, Paul Scully, Ryan Park and Lee Evans.
Dr Dennis King, chair of the local health district board, was also recognised.
"This has been a very good example of very good, cooperative, bipartisan collaboration among my parliamentary colleagues and the minister," Mr Scully said.
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