Plans to build a multi-million pound community hospital have taken a huge step forward.

West Sussex Primary Care Trust (PCT) has given the go-ahead to develop a business plan for the creation of the hospital at Littlehampton.

If all goes to plan, work could start on the site at the end of the year and ready for use by early 2010.

The decision has been welcomed by campaigners who have fought for several years to have the hospital built.

The new development, which is expected to cost more than £10 million, will be built on the site of the former Littlehampton Hospital site and likely to be paid for through the public sector.

Work had originally been due to start building the new hospital in 2006 but was put on hold because of NHS budget problems.

Further delays followed because of the launch of the Fit for the Future public consultation, which could lead to maternity and accident and emergency services being lost at West Sussex hospitals.

However the PCT says the time is now right to press ahead with their plans for Littlehampton as there will be a need for community facilities in the area regardless of what happens under the Fit for the Future plans.

The full details of what will be at the new hospital need to be finalised but it is likely to have between 25 and 40 beds and a range of facilities such as X-rays and ultra sounds as well physiotherapy community dental services, outpatient clinics and a minor injuries unit.

There are also plans to provide sexual health services and a scheme to promote health and wellbeing which will be supported by the local community.

The proposals were welcomed by Littlehampton mayor James Walsh.

He said: "I am absolutely delighted and this will be a new chapter for Littlehampton. A very important step has been taken.

"It is good news not just for Littlehampton but also those in surrounding areas who will also benefit from this."

The decision has thrown up concerns about what will happen to the Zachary Merton community hospital in nearby Rustington which some people believe may be sold off to help pay for the new hospital development.

Rustington Parish Council chairman Mike Warrington said: "We are pleased that things are finally happening and it is a good step forward but we will be watching closely to see what the plans are for the Zachary Merton.

"It is a well used hospital and continues to provide a good service. We would like to see it continue to be used."

The PCT board meeting at the Charmandean Centre in Worthing today was told a patient forum group would be set up so people in the area could have their say on the hospital's future development.

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