Health Minister Daniel Andrews, who visited the site last week with Macedon MP Joanne Duncan, said the hospital would ensure families in Sunbury had access to good health services close to their homes.

"The Government is taking action to give Victorians a better health system, by building new hospitals and hiring more doctors and nurses," Mr Andrews said.

"This $21.4million hospital will offer same-day surgery services so local residents can have minor procedures performed quickly and close to home.

"That's great news for patients with less complex health conditions.

"There will also be renal dialysis services and a range of other specialist clinics to meet the health-care needs of families in this growing community."

Mr Andrews said building works were expected to be completed by November, with clinical services beginning early next year.

"The benefit of this new facility is that it will be flexible and adaptable to the changing health needs of the local community, so that families can get the particular type of care they need.

"It will be run by the fantastic team at Western Health, and will be a real boost to the health services available in the area."

Ms Duncan said the new hospital would bring world-class health services to the local community.

"It is estimated the whole project will generate about 100 jobs, so that's good news for the local community.

"The hospital is further proof of the Government's commitment to delivering extra health services to residents in Melbourne's outer suburbs."