Patients will benefit from a new operating theatre to provide more capacity for day surgery at the Princess Royal.
Work has started on building the theatre in front of the Haywards Heath based hospital and surgery procedures will include minor hernia and stomach operations.
The theatre is needed to free up space at the Royal Sussex County Hospital in Brighton which is the main trauma centre for this area.
The freed-up space in Brighton will be used by vascular surgeons who are concentrating their resources on trauma work.
If £420million comes from the Treasury, Victorian and Georgian buildings at the front of the County Hospital will be demolished to make way for a new trauma centre for Sussex and the south-east and en suite facilities for patients in a project called ‘3Ts’.
However, speculation remains over whether money will be granted for the project.
Richard Beard, head of engagement for the 3Ts project team said: “Things are moving forward but there is not a lot we can say at the moment. Funding is being actively reviewed by the Treasury.
“We’ve got the first piece of work off the ground - we are doing internal changes to St Mary’s Hall to the side of the County Hospital so that we can move management and administrative staff in.”
The new operating theatre at the PRH is being constructed on land currently used for 30 parking spaces. Beechmont, a white Victorian villa near the entrance to the Princess Royal off the A272 will be demolished to create 60 extra parking spaces.
Mr Beard said: “Beechmont is not listed. It’s a standard building for the period and is currently used for training purposes.”