A planning application to turn Surbiton Hospital into a polyclinic could be submitted by the end of the month.
NHS London bosses are currently poring over the business case for the development, David Smith, chief executive of NHS Kingston told councillors on Tuesday evening.
The new hospital is scheduled to open by 2012, with a primary school on part of the site.
Mr Smith said: "We are set to put the planning application in sometime later this month or in November."
Neighbouring GP surgeries would move into the hospital, offering services such as x-rays, phlebotomy, blood tests and MRI scans without patients having to visit Kingston Hospital.
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