East Grampians Health Service in Ararat is set to refurbish its radiology and pathology departments following a $4 million grant from the Victorian government.
East Grampians Health Services chief executive Andrew Freeman said having known the funding was coming well ahead of time has given the hospital time to prepare.
"This was an election commitment from the (state) government," Mr Freeman said.
"We knew we were going to get this money and have been planning for about 18 months now because we're combining this project with our upgrade to our theatre and our sterilising department as well, so the combined value of the project will be $6.9 million.
"We've actually appointed a commercial builder (Nicholson Construction) who already has site sheds and are on site now."
Mr Freeman said the project would improve the hospital in several ways.
"The sterilising department needs to be upgraded so were compliant with the Australian standards by June 2021," he said.
"The expansion of the second theatre will mean we can do larger procedures in there, as its a bit restrictive in terms of space at the moment.
"We fix up a number of occupational health and safety issues with this project as well. For the CT scanning, you currently have to go down a ramp to get to it, which for elderly people or people with a disability it can be a bit tricky, but that will be brought up on the same level.
"So, theres quite a number of things that are really exciting. Some will be an efficiency type thing, some will help with occupational health and safety, and some will mean that into the future we can provide additional services to the community as well."
The grant is part of the fourth round of the Regional Health Infrastructure Fund, which has divided $140 million among 76 infrastructure projects across the state.
Labor Member for Western Victoria Jaala Pulford announced the grant recipients on Monday, December 14.
Ms Pulford said the funds would help staff and patients alike.
"The Andrews Labor Government is investing in hospitals right across the state and our
dedicated doctors, nurses, and patients are all set to benefit - including right here in the Ararat community," she said.
The refurbishment of the pathology and radiology services includes the construction of a new corridor between the Urgent Care department and Medical Imaging, an extension to the main hospital to house new medical imaging diagnostic rooms, and upgrading the amenity of pathology collecting spaces as well as a new accessible toilet.
The upgrades are expected to take about 12 months to complete.
Lake Bolac Bush Nursing Centre also received $18,350 for security improvement works and $19,745 for the supply and installation of a new auto-start generator.