It will be the largest health-related capital project in the east of England.
Lister Hospital will become the main emergency and inpatient hospital for east and north
The expansion of the hospital in Stevenage, which is part of the East and North Hertfordshire NHS Trust, represents the fourth and final stage of the redevelopment of services in Hertfordshire and involves the consolidation of acute services in East and North Hertfordshire on the Stevenage site and closures elsewhere. Including earlier phases, the overall project is worth about £150 million.
The scheme includes an extension to the emergency department, a new ward block, and a new theatre and endoscopy block.
The hospital tower building will also be refurbished.
Works will be procured using the NHS’ Procure 21+ arrangements.
Mr Lansley said: “The urgent need for this project has been apparent for many years now and I applaud the hard work of those who have brought us to this point. This is the fourth and final phase of the reconfiguration of services in east and north Hertfordshire and it will help deliver high quality and sustainable care for patients for many years to come.”