The Â£40million of funding will be used to create a Combined Emergency Assessment Unit, which will help staff to assess patients more quickly and make sure they get the right type of treatment.
The new unit will be set up alongside the A&E department and the on-site Urgent Treatment Centre,
Mike Proctor, Chief Executive of York Teaching Hospital NHS Foundation Trust, said: “This is the news we’ve been waiting for and is fantastic for both patients and staff, signaling our commitment to investing in Scarborough Hospital.
“This much-needed development means we can improve and streamline how patients are assessed, admitted and treated, which should reduce the time that people wait in the department, and ultimately improve patient safety.
“This scheme will bring our total investment in our East Coast buildings and infrastructure to over Â£80 million since 2012.”
It is part of an Â£88.5million funding bid by the Humber, Coast and Vale Health and Care Partnership, which will be used at emergency departments in Scarborough, Grimsby, Scunthorpe and Hull.
The Â£40m for Scarborough Hospital comprises of Â£22m for the ne wunit and Â£18m for engineering infrastructure upgrade work, including work that will support the emergency department work.