Lawson businesses are pushing for any new hospital in the Mountains to be built in their town.
The Lawson Chamber of Commerce believes land at the old Lawson golf course (pictured) would be ideal.
The group has made a submission to the parliamentary inquiry which is looking at health issues in rural, regional and remote NSW.
They argue that there are many drawbacks at Katoomba, including limited parking and no easy access from public transport. And the only vacant area which could be built on is the very steep showground across the road.
They question, too, how a hospital could continue to be operating while a new one is built around it.
The Lawson site, in contrast, is much larger and far less constrained, they wrote.
"Much of the old Lawson Golf Course is relatively flat. It lies at the bottom of a small valley. The site is mostly clear of vegetation on the old fairways. Little land clearing or removal of trees would be necessary.
"There is ample land available to provide a suitable building, adequate parking and a helicopter landing pad."
They said that to continue renovating and adding to Katoomba hospital was clearly impractical and it was common sense to build a new hospital at the centre of the Mountains.
And because it was that much closer to the city, specialists would be more willing to travel.
"Consultant doctors are unwilling to travel to Katoomba. The distance and time needed to travel there deters them. It is important to note that Lawson is at a lower altitude than Katoomba and closer to the plains so would reduce a consultant's commute by about an hour."
Lawson also boasted better weather and was rarely impacted by mist or snow.
The chamber argued that Katoomba hospital should be repurposed for much-needed aged care and disability accommodation.
"Blue Mountains residents have had their health care needs neglected for long enough. NSW Health is aware that the Blue Mountains needs to replace Springwood's and Katoomba's hospitals with a single all-service hospital, having prepared a report some years ago recommending this.
"The inquiry is requested to recommend that funding be set aside to build this new hospital in Lawson without delay."
Ward 3 Councillor, Romola Hollywood, said she supported the idea of a new hospital but that finding a suitable site should be done in consultation with the community and council.
She said the master plan for the golf course would further protect Lawson Creek and provide an expanded off-leash area as well as new walking and cycling paths.
"Based on the community feedback through our master planning processes ... I don't think this area would be a suitable location for a new hospital, as much as a new hospital is needed."