Development approval for a much-anticipated health project in Canberra's south has been granted after several months of evaluation.

A redevelopment of Calvary John James Hospital in Deakin was conditionally approved by the ACT Government this week, and work is expected to commence in the next six months.

Expected to cost $500 million, major changes include updated maternity, intensive care, general and rehabilitation beds; 10 operating theatres, endoscopy facilities and a gym for rehabilitation work.

It will be anchored by surgery areas, including two new theatres, bringing to total to 10.

Specialist health areas, including diagnostic imaging and medical training, will also be included.

The work will reduce the number of beds in the hospital from 130 to 98; however, Calvary confirme

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