The Launceston General Hospital is one step closer to gaining an additional 132 car parks.
On Monday works will begin on the hospital's car park expansion, with two additional levels to be added.
Health Minister Sarah Courtney said the $5 million investment would help ease parking challenges and ensure patients and families have better access to the hospital.
"Importantly, the work will also include a reconfiguration of parking in the precinct, with the aim to make more public spaces available close to hospital entrances," she said.
"The two additional levels will add 132 extra spaces to the precinct, on top of an additional 37 spaces which are being delivered as part of the Ward 4K works."
The development forms part of the government's six-year planned major redevelopment and expansion of the LGH.
While the car park is intended primarily for the use of staff, acting Tasmania Health Service director of operations for the North and North West Fiona Young said the development would free-up on street parking for hospital visitors.
"We are responding to demand and building infrastructure for the future," she said.
"Having added spaces, given the demand on existing car parks, is going to be a huge benefit for staff, patients and visitors.
"Between this and Ward 4K there is a lot of exciting development at the LGH."
The existing multi-level car park at the LGH was constructed in 2012.
With the additional two storeys, the new car park is expected to be more than 19 metres at its tallest point.
Vos Construction and Joinery Pty Ltd have been appointed by the Health Department to undertake the works.
Northern construction manager Brent Wilcox said the project was an example of critical infrastructure expected to positively impact the community.
"Vos are committed to supporting and encouraging local industry throughout the construction program, where more than 100 tradespeople will be employed," he said.
The LGH employs about 2000 staff and treats more than 24,000 inpatients and 225,000 outpatients annually.
The project is due to be completed by the end of 2020.