A new 120 bed building for the National Rehabilitation Hospital (NRH) site in south Dublin has gotten the go ahead.
A further €15 million has been allocated by the Department of Health to ensure construction goes ahead at the facility at Rochestown Avenue in Dun Laoghaire, according to local Labour TD Eamon Gilmore.
The hospital provides treatment and rehabilitation for the victims of crashes and strokes.
Former Tánaiste Eamon Gilmore has welcomed the news, saying the NRH is currently located in buildings "which have outlived their time".
Mr Gilmore said, "the Hospital recently secured planning permission for the new development. There was however, a shortfall in the original estimate for the work. The €15 million allocated funds will bridge that shortfall and will enable the HSE and the hospital to proceed with the work.
"It is a good day for health services in Dun Laoghaire and for rehabilitation services in the country," he added.