Member for Wollondilly Jai Rowell announced $50 million had been secured for Bowral and District Hospital improvements.

Mr Rowell said the money would create “more services available to local carers, patients and their families” in an announcement on his Facebook page.

He also mentioned the non-government sector would be invited to become involved in public health “to leverage this [money] even further”.

“This approach will ensure that the whole community has access to high quality health services at the right time and closer to home,” he said.

“It will make sure everyone who needs to be treated will get treated.”

Health minister Jillian Skinner said partnering with non-government hospital operators would ensure the sustainability of the health system.

“We’ve invited the private sector to get involved, the non government sector, to see if we can’t enhance the critical services that [patients] will get through the Bowral Hospital,” she said.

However, the invitation to non-government sectors to submit tenders to build and run public hospitals has drawn criticism.

Labor health spokesperson Walt Secord said the changes could “see the creation of a two-tier health system in NSW.”

The first announcement of the funding was in 2015 when Mr Rowell was campaigning for the state election.

At the time, Mr Rowell said the funding would bring the hospital “into the 21^st century”.

“We're going to work with the local health district to make sure they get something that suits their needs,” he said.

"It will provide improved access to services, meet the demands of today and will meet what's to come."

Hospitals in Bowral, Maitland, Wyong, Goulburn and Shellharbour have all received the funds promised during the 2015 state government election.