Ontario Health Minister Sylvia Jones says a new hospital will be built and operational within 10 years in Whitby, Ont.
The province has given Lakeridge Health $12-million in grants as it works on a master plan for the Durham region, east of Toronto, for several health-care projects.
Lakeridge plans to add 300 new hospital beds as part of the long-term project.
That includes a redeveloped hospital in Bowmanville, Ont., and a new post-acute care facility in Pickering, Ont., for rehabilitation and recovery.
The province and the hospital are also considering redeveloping the Ajax Pickering Hospital.
Lakeridge says the provincial funding will allow it to address gaps in complex continuing care and rehabilitation services across the region.