The hospital is earmarked for the site of the Royal Infirmary
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Plans to build a 'super' hospital in Greater Manchester have finally been approved.
The project will see one of the UK's biggest hospitals built on the site of Manchester Royal Infirmary, with adult and children's services under one roof.
The privately-financed project was put on hold earlier this year because NHS bosses said it would plunge the region into £3bn-worth of debt.
MPs ordered an audit of the Greater Manchester Strategic Health Authority (GMSHA) project after the cost of the children's unit escalated from an initial figure of £134m to more than £420m.
The audit came after the 14 Primary Care Trusts (PCTs) that make up the GMSHA raised concerns about the potential impact on other health authorities surrounding Greater Manchester.
The latest plan revises the overall estimate to £350m, cutting building costs by £33m and freeing up £10m a year to be spent in other health authorities in the region.
There will now be 150 fewer beds and four fewer operating theatres than originally planned.
Work on the children's hospital should be completed by October 2008.