A far-reaching expansion plan has eased fears over the future of Southlands Hospital in Shoreham.

The hospital will be transformed under the multi-million-pound programme announced by Worthing and Southlands Hospitals NHS Trust.

The transfer of in-patient orthopaedic and elderly care services to Worthing by 2004 had sparked fears the hospital would be run down and sold for development.

But today trust chairman Stuart Heatherington said the plans showed there was a strong commitment to the hospital's future.

He said: "At one stage there was tremendous concern over the future of Southlands.

"What this establishes very clearly is we are putting our money where our mouth is."

The expansion will see more day case surgery and community services provided, including an all-in-one health centre.

NHS bosses want the hospital to carry out extra medical procedures such as keyhole surgery for biopsies, increase its out-patient clinics and provide rehabilitation services.

A bid is being drawn up for Government cash to set up a diagnostic and treatment centre that would care for eye patients across West Sussex and there will also be an expanded day surgery unit.

Representatives from all the health and social care agencies in West Sussex have been involved in working up the plans under the chairmanship of the Adur, Arun and Worthing Primary Care Trust.

Chief executive Steve Phoenix said: "This is an exciting time in the history of Southlands.

"A number of developments are coming together which could give it a clear role in the future."

There are also plans for the PCT to transfer its headquarters from offices at The Causeway, Durrington, to Southlands which would save £7 million to be ploughed back into health care developments.

PCT leaders hope to set up a health centre-type development at the site offering a range of community services such as GP, dentistry, chiropody, health visitors and antenatal care.

Under the plans for the diagnostic and treatment centre, two operating theatres will be bought back into use and the hospital would become home for the West Sussex Eye service, currently housed at Worthing Hospital.

The existing surgery unit at Southlands will transfer to the hospital's main theatre and expand to provide additional treatment and diagnostic procedures, including gall bladder and hernia operations and some gynaecological treatments.

In a separate announcement, Southlands was given a clean bill of health following hygiene criticisms by the Department of Health's Patient Environment Action Team and the hospital will be exempt from future inspections.