Member for Bega Andrew Constance said December 7 marked a significant milestone in the delivery of the regional hospital east of the Moruya TAFE.

He said the planned Moruya Bypass would also cross the Moruya River east of the TAFE at a site likely to be announced soon and would complement the hospital site.

"This facility will be built to cater for the health service needed across the region," he said.

"It will be an incredible place of care for our community and a tremendous workplace for staff.

"The Eurobodalla Health Service will deliver a new, modern and purpose-built hospital to accommodate a range of Level 4 Services for the entire Eurobodalla shire, from Narooma to Batemans Bay.

"Consultation with the community and consumers, local Aboriginal groups and key stakeholders, including Transport for NSW and the Eurobodalla Shire Council, helped identify the preferred site in south-east Moruya."

"The preferred site has been evaluated against a range of assessment criteria including current and projected population growth areas, flood and bushfire zones, capacity for future expansion, transport, and access to and from key infrastructure such as Moruya Airport and the planned Moruya Bypass.

Mr Constance said an acquisition process will now commence with the owner of the preferred site.

"This is a regionally significant development. Planning and design of the new hospital will be a collaborative process involving consultation with clinicians, staff, patient groups, local stakeholders and the community," Mr Constance said.