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Dover's new community hospital will be buiilt on the Buckland Hospital site.
East Kent Hospitals University NHS Foundation Trust is to go ahead with the development at Buckland, and has started work on the formal planning application.
The new hospital will provide for an increase in the number of hospital outpatient appointments which can be offered to the people of Dover, rather than having to travel to Ashford, Canterbury or Margate.
Plans will include a minor injuries unit staffed by nurse consultants, and talks are taking place with GPs to explore the possibility of extending the opening hours of the centre from 8am to 8pm.
Other new developments include minor surgery in a dedicated procedure suite, therapy services, a day hospital and diagnostic services including mobile MRI and CT services.
Initially a 200-space car park is being proposed.
The trust says it has also agreed to provide land within the site in order to provide local GPs with a location on which they could build an Intermediate care bed facility.
The district council has welcomed the news, saying the decision provides much-need clarity and enables the council “to move forward with partners to maximise the benefits for the future of the area”.
The authorities have ruled out any alternative site for the hospital, which will be a blow to those who have been campaigning for a new general hospital to be built at Whitfield.