Portiuncula University Hospital in Ballinasloe, Co Galway is to acquire 16 new acute inpatient beds over the next four years.
Ten of the beds will open later this year along with a new 50-bed ward block which has recently been completed.
A further six new beds will come on stream between 2024 and 2028.
Interim CEO of the Saolta University Health Care Group Ann Cosgrove said: "We welcome the commitment to enhancing infrastructure and capacity that we know we badly need in our region. This investment will help address the Urgent and Emergency Care pressures and support a regional balance of capacity provision."
PUH hospital manager James Keane also welcomed the announcement and said: "These new beds will greatly benefit our local communities and we look forward to progressing these plans as quickly as possible."