Work has started on a £1.25 million renovation and upgrade of the Mary Hewetson Community Hospital in Keswick.
The hospital has not closed while the refurbishment works take place.
The project has received funding from NHS Cumbria, Cumbria Partnership NHS Foundation Trust and Keswick Hospital's League of Friends.
The work is expected to take six months to complete.
"The project will not constitute a 'new build' but will involve relocation and improvement of the facilities within the existing building structure.
"The implementation of the proposed plans will increase the quality of care provided within all of the hospital, however the departments where most benefit will occur are minor injuries and the management of in-patients."
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