Proposals for a new £19m community hospital in Beverley have been approved by East Riding of Yorkshire Council's planning committee.
The East Riding Community Hospital at Swinemoor Lane will replace the town's ageing 12-bed Westwood Hospital.
Supporters of the plans have said the current hospital is inadequate.
Concerns have been raised from the Beverley Civic Society and Yorkshire Wildlife Trust about traffic and environmental impact.
NHS East Riding of Yorkshire said work was expected to begin in the autumn, with the hospital opening in 2012.
Outline planning permission was granted by the committee in September.
Plans for the hospital include a 30-bed inpatient ward, a minor injuries unit and a GP surgery complete with pharmacy.