Stage one of the new Warren Health Service in Manjimup is now complete following months of construction.
Minister for Health, John Day, said parts of the hospital had diverted existing services to new areas during construction.
"The building tender for the main build of the new Warren Health Service has now been released and the contract is due to be awarded in July 2016," Day said.
"The new hospital will include a state-of-the-art emergency department, an inpatient ward, surgical services, operating theatre, medical imaging, pathology and outpatient, primary health care and other support services."
Works included the demolition of the corporate services building, as well as the demolition of some accommodation blocks.
Minister for Regional Development, Terry Redman, said the upgrades were made part of the $500 million Southern Inland Health Initiative.
"As the Member for Warren-Blackwood, I'm pleased to see this new health facility come to fruition and for the people of Manjimup to be provided with a modern, well-equipped health facility that suit present and future needs," Redman said.
"Royalties for Regions is transforming health care across regional Western Australia. Regional communities deserve access to a high level of health care and investing in health infrastructure and services can reduce the need for residents to travel to Perth for diagnosis or treatment."
The hospital is due for completion mid-2018.
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