The announcement coincided with a visit today by chancellor George Osborne to Rowley Regis Hospital – part of Sandwell & West Birmingham Hospitals NHS Trust.
Mr Osborne has approved £100m of state funding upfront for the project and sanctioned the trust to seek a PF2 partner to take it forward.
The new Midland Metropolitan Hospital will bring together acute services on to one site, promoting better patient safety and a patient experience while ensuring the best value for money for the taxpayer.
The 670-bed hospital in Grove Lane, Smethwick, is being built over 16 acres on a former heavy industrial site. It will have approximately 80,000 square metres of floor space and will replace Sandwell Hospital in West Bromwich and City Hospital in Winson Green.
The trust expects to select a private sector partner next year, which will in turn select its main contractor for the building works.
Construction of is expected to start in 2016 and be completed by 2019.
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