A concept plan for a $315 million private hospital and health precinct has been today been given planning approval.

The Illawarra Health Precinct development by La Vie Developments Pty Ltd will be located on 10.5 hectares of land at Penrose in the West Dapto land release area, which is expected to generate 16,000 dwellings over the next three decades.

Sydney-based, health specialist architectural firm, Imagescape Design Studio, created the concept plan.

A $38 million, two-storey surgical centre was also given the green light. The centre will accommodate 92 specialists and include six operating theatres, nine high dependency beds, 21 recovery beds and 10 overnight hospital beds.

A total of 50 conditions have been imposed, including design modifications and additional landscaping to minimise visual impact on nearby residents.

?The entire concept plan involves eight stages to be completed over a 15 year period, with individual approvals being required for the detailed design and construction of each stage.

Other stages include a radiology and pathology service, hospital and medical centre, stand-alone obstetrics unit, hospital with 303 beds, retail shopping outlets, staff and student accommodation with 50 serviced apartments, an education facility, and an aged and disability centre and accommodation.

“West Dapto will be the Illawarra’s biggest urban release area over the next 25 years, and a facility such as this will ensure important health services are available to new and existing residents throughout the region,” minister for Planning, Tony Kelly, said.

“This is in line with the priorities of the State Plan and Illawarra Regional Strategy to improve and maintain access to quality healthcare in the face of increasing demand.”

Imagescape Design Studio declined to comment.