WORK is well underway on a multi-million-dollar upgrade at Stawell Hospital, with demolition of an old allied health wing almost complete.
A new community rehabilitation and oncology centre will be built on the old allied health site.
The new building's foundation is being prepared for the concrete floor slab.
Stawell Regional Health chief executive Rohan Fitzgerald said he was pleased with the progress so far.
"It's exciting to see this project becoming a reality," he said.
He said the new centre had been in planning stages for more than a year. Work started early last month.
He expected work to be completed by the end of the year.
"It's going to be wonderful to be able to treat oncology patients in a modern, comfortable and private environment and offer rehabilitation patients access to state-of-the-art facilities," he said.
The new centre will also include services such as physiotherapy, occupational therapy and speech pathology.
"We will offer a diverse range of services," he said.
Mr Fitzgerald said he anticipated the expansion of services would provide more jobs in the area.
He said for the duration of the project, chemotherapy patients would receive treatment in the hospital's day centre and outpatients would see their consultants in Building B.
He reminded people that the carpark and driveway between Building B and the helipad carpark was closed during construction and all traffic was being redirected through the helipad carpark.
The community rehabilitation and oncology centre is being funded by a $3.5-million Federal Government grant and a $180,000 State Government contribution.
Callawadda shearer Aaron Hemley raised $120,000 last year towards the oncology unit during a mammoth shearing marathon.