The province has granted approval to tender the project to redevelop the Emergency and Laboratory departments at Southampton Hospital.
Grey Bruce Health Services will now begin the multi-tiered tender and approval process.
President and CEO Lance Thurston says the approval means they can move forward with plans to double the size of the lab and triple the square footage of ER. He says it will also ensure modern and well equipped facilities to treat patients.
The planned layout focuses on enhancing patient services with improved waiting spaces, infection control, and more space for lab processing, decontamination and isolation.
The government will put up 90 per cent of the estimated $10-million project cost, with the rest covered by local fundraising.
Thurston hopes to award the tender in the New year, with project completion scheduled for the fall of 2018.
Southampton Hospital will remain open in all phases of construction.