A new aseptic suite is to be developed at Craigavon Hospital in Co Armagh.
Construction work on the £3.37 million suite is to begin soon and the building is expected to be completed by January 2019.
Sinn Fein MLA John O'Dowd welcomed the announcement.
He said: "The new aseptic suite will be attached to the Pharmacy Department and will help improve the ability of healthcare staff to provide the best care to patients and service users.
"It will be used as a sterile environment to prepare specialist medicines and medical products for use by cancer patients for example.
"I would urge the Southern Health Trust to ensure any disruption during the building works is minimised and patients, families and carers are fully informed of any alterations to parking and other arrangements at the hospital."
(CD/LM)
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