Construction of the Midland Metropolitan hospital will now go ahead, after the government approved £350m to rescue the project.
The funding will secure the future of the new hospital which has been stalled since the collapse of Carillon in 2018. The project is now expected to be completed in April 2022, and commercial terms for the construction work with preferred bidder Balfour Beatty are expected to be finalised in the next few weeks.
The new hospital will bring together urgent care services from two hospitals across the region into one state-of-the-art site.
Chancellor Sajid Javid, said: “It is absolutely right that the Midland Metropolitan hospital is completed so that doctors and nurses working for our NHS across the West Midlands can deliver excellent care in brand new, state-of-the-art facilities.”