Far West Area Health Service chief executive officer Heather Gray said the 42 modules needed to make up the hospital would be transported two or three modules at a time.

"Once the earthworks are completed, the modules will be transported from Thiess' Forbes factory."

She said the whole development process would also employ some local people to do extended works during the time of the project.

However, the hospital will now no longer be completed by Christmas, with the new proposed date being the end of January next year.

"There have been some delays in our Forbes factory, with modules for our other rural hospitals being constructed and so we're a bit behind schedule."

But Ms Gray said the new hospital would be well worth waiting for.

"A 24-hour accident and emergency centre will be provided for the community of Lightning Ridge.

"Four acute beds and 20 aged beds will also be introduced , which means that seniors who are currently being looked after elsewhere can get permanent residency in our hospital," she said.

The United Hospital Auxiliary of Lightning Ridge has welcomed the news and indicated it was well on the way to reaching the $100,000 target it had pledged last year, with $60,000 already raised.