The Southern NSW Local Health District (SNSWLHD) compared the planning process to the respective Goulburn and Eurobadalla $150 million hospital redevelopments. "These things can't be rushed," a SNSWLHD spokesperson said.

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In February, the State Government pledged $2.5 million for the hospital upgrade, contesting Labor's pledge of $3.5 million, and provided assurances to the community.

Goulburn MP Wendy Tuckerman said the funding was available, but would not be delivered until planning was completed.

Both the SNSWLHD and Mrs Tuckerman were pleased with the project's progress.

"I am confident there will be no delays ... my understanding is that planning is well underway," Mrs Tuckerman said.

The proposed scope of works was being reviewed and a lot of planning was yet to be done, Mrs Tuckerman said.

"I have been reassured the local health district is very comfortable with the current status of the hospital planning phase," she said.

"While I'm looking forward to seeing milestones - like the completion of planning, tender issue and commencement of works - the planning has to take place before funding is forthcoming.

"We want to make sure the job is done right."

SNSWLHD (northern cluster) general manager Denis Thomas said planning would begin this quarter, including support for clinical services.

Pending endorsement of a project management plan, there would be consultation with hospital staff and community, he said.

Subject to approvals, the hospital upgrade was expected to commence in 2020, Mr Thomas said.

The upgrade would improve facilities such as:

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