EAST Surrey Hospital is embarking on a four-year project to improve services for patients and staff.
A three-phase plan to extend and renovate the Redhill hospital has been given the green light by Reigate and Banstead Borough Council.
The hospital, run by Surrey and Sussex Healthcare NHS Trust (Sash), hopes to build a new 21-bed ward as well as new outpatient and administration facilities.
The new ward would allow patients to be moved there while the existing wards are updated and improved.
The current 28 wards built in the 1980s have had little refurbishment over the last 30 years.
In the trust's planning statement it said an assessment of the existing facilities found they were "severely undersized" and non-compliant.
Staff rooms and consultation and counselling spaces for relatives were described as "inappropriate".
On Thursday, the borough council's planning committee welcomed the plans and hailed the hospital's ambition.
Councillor Stephen Bramhall said: "This is to make ill people better and we should support the application wholeheartedly."
Committee chairman Councillor Mark Brunt said: "We all respect the fact the hospital is making big strides and is a great service to our community."
The first phase of the development is the most urgent and due to be completed by this winter.
Michael Wilson, chief executive of Sash, said: "The approved planning application is for developments we'd like to build in the future in order to offer our patients and staff better facilities.
"First on the list is a new 21-bed ward that will allow us to temporarily care for patients while we refurbish some of our existing wards to bring them up to our high standard.
"Work on this ward will start straight away in order to have it ready for the winter, which is our most challenging season and when we need all of our wards available."
The plan also includes two subsequent phases, which would be built when required.
The second phase will see a similar building to the first built, to be used as an outpatient facility.
The third phase is the development of first-floor levels over the two new buildings, which would be connected to the main hospital.
Mr Wilson said: "This planning application has allowed us to have a vision and plan for the future in a co-ordinated and sustainable way."
In the last couple of years, the hospital has opened a remodelled emergency department, new operating theatres, radiotherapy unit and two new wards – Copthorne and Charlwood.