However, Health Minister Brad Hazzard today confirmed that commitment, and accused the Labor Party of "stirring the community up" over the hospital.

The Eurobodalla Shire's population is forecast to grow by more than 5000 to 45,000 by 2036, and a Labor spokesperson said the local hospital system was "already under strain before the pandemic".

"Eurobodalla Health Services have to send more than 40 per cent of its patients to hospitals outside the region," the spokesperson said.

"Its emergency departments have the highest number of presentations and resuscitations in the Southern NSW LHD. Its maternity services have the largest number of births for a rural maternity service in the LHD. and there is a 12-18 month waiting time for paediatric consultations."

The spokesperson said local health workers had met with NSW Labor leader Chris Minns on Sunday to discuss the excessive workloads and severe staff shortages impacting local hospitals.

Local doctor Michael Holland, Labor's candidate for the Bega by-election, has already had to refer patients to Canberra in recent weeks to receive the appropriate care they need as COVID-19 continues to spread in the community.

"We have a very large older population," Dr Holland said. "If I was over 65, I would be very worried that the new hospital hasn't started and won't have level four services for years after opening.

"What will happen if you get cancer, need a hip replacement or need ICU?

"I'd be very worried if I was having a baby or had young children as the hospital will not open with level four paediatric services.

"I have been raising these issues with the NSW Liberal Government for years - yet nothing has been done."

Shadow Health Minister Ryan Park said the spread of COVID in the Eurobodalla Shire had pushed local health workers to breaking point.

"Patients are being forced to travel for hours to receive the care they need," he said.

Despite Labor's accusations, Mr Hazzard said the hospital would "absolutely" open as a Level 4 facility.

"That's what we're doing; that's why we're working on it," he said during a press conference in Batemans Bay on Friday.

"I'm giving very clear instructions to the local health district and the Ministry of Health to do whatever they can to make sure that we open on day one as a Level 4, and we will go hell for leather to make that happen.

"The facilities will be there and we believe that with the works going on with the local health district now, we will attract the staff we need.

"The Eurobodalla will work as part of a state-wide network, but it will also be a major attraction for specialists who want to change their lifestyle."

Mr Hazzard also accused the Labor Party of politicising the planned hospital.

"I can say that the truth has not been a high commodity so far from what I've seen from the Labor Party," he said.

"They're stirring the community up rather than getting them excited about what is being done."