Work has begun at Teignmouth Hospital to expand its services.
A new spinal and back-injury clinic and two new outpatients clinics for heart and colorectal patients have been opened in the past few weeks.
A day case and theatre recovery area, consisting of a six-bed bay, television and seating is also being created.
Hospital chiefs are also piloting a primary care investigation unit two mornings a week, which offers urine, ECG, blood pressure and blood testing facilities.
Extra theatre lists include one general surgery, one max-facial and plastics, the latter to be introduced shortly.
The hospital steering group is examining block plans and room planning for the new extension.
the face-lift, which is costing around £1 million, comes after the hospital was the centre of a row after the announcement that Sandpiper ward would be closed to help make way for the new arrangements.
The idea was for outpatients to go elsewhere, while the extra space would be used for the new services to prevent people having to go to Torbay Hospital.
The remaining Kingfisher ward would be capable of handling the same number of patients.
Pam Smith, chief executive of Teignbridge Primary Care Trust, said the expansion plans showed the trust's commitment to Teignmouth.
The foundation stone of the present hospital was laid on March 19, l953, and the authorities are planning events to celebrate the 50th anniversary.
Teignmouth was the first new NHS hospital to be built, the original being bombed on May 8, l94l, in an air raid in which three nurses and seven patients were killed.