Niagara Regional Council is committing $44.5 million in principal to support the new South Niagara Hospital.
The province is covering the majority of the cost for the hospital, but the local government is expected to pay 10 percent of construction costs and all of the cost for new furniture, fixtures, and equipment.
The local share of the funding comes out to around $212 million based on feasibility studies and recommendations by consultants.
The funding from the region is dependent on final budget approval.
Officials say the South Niagara Hospital project is on schedule and requests for proposals will be released in the early fall.
The new hospital will be at the intersection of Biggar Road and Montrose Road in Niagara Falls.
The plan is to break ground in 2022 and open the hospital in 2026.