THE single biggest infrastructure funding injection for Wodonga hospital since the inception of the cross-border health service a decade ago has silenced speculation the facility will be closed.
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The mental health rehabilitation unit will complement an eventual upgrade of Nolan House located at Albury hospital.
But Albury Wodonga Health chief executive Leigh McJames said Wodonga hospital's future was never in doubt as part of changes in the delivery of health services on the border.
"The message keeps getting muddied," he said.
"There is a lot of development that will go on the Albury campus and there is going to be equal amount of development and just as important on the Wodonga campus.
"The roles are changing to deliver a better service to our community.
"But both campuses have a very bright future with more jobs and more services."
Mr McJames said the health service was still hopeful of securing NSW Government funding for the Nolan House upgrade shortly and was heartened by an awareness of the required revamp from re-elected NSW Premier Gladys Berijiklian when her government pledged another $45 million for the Albury emergency department upgrade.
"The Premier of NSW when she made the (emergency department) funding announcement said the door was open and we're knocking on the door," he said.
Mr Martin said the planning work put in by the health service justified the funding boost.
"This is not an election commitment, this is going to happen," he said.
Ms Ley said it was a huge boost to mental health services on the border.
"Those who are anxious and concerned about the mental health of their loved ones can take comfort from this announcement," she said.
Outgoing Indi MP Cathy McGowan, who attended the announcement, paid tribute to Ms Ley.
"Sussan has been a fantastic colleague of mine," she said.
"She has been so outstanding in her work for Albury-Wodonga, in particular for health.
"Regardless of the politics at play you've held it true."
Ms McGowan said her long-term hope was a new hospital for Albury-Wodonga on a greenfield site which member for Benambra Bill Tilley has already championed.