Three NSW MPs have visited Katoomba hospital in recent months to see for themselves the deteriorating conditions of the buildings.
Blue Mountains MP, Trish Doyle, said she had personally taken the politicians through to back arguments that the hospital needed "an upgrade at the very least".
The health minister, Brad Hazzard, NSW Labor leader, Chris Minns, and shadow health minister, Ryan Park, had each visited to see "that repairs are desperately needed and ageing equipment must be updated so that our hospital is brought up to acceptable, modern standards", Ms Doyle said.
"The local team of doctors, nurses, midwives, paramedics and hospital staff do an incredible job but they, and the patients they treat, deserve a facility that offers a wider range of clinical services in a building that isn't falling down around their ears."
Ms Doyle said it was "just not good enough that our community is expected to travel to western Sydney to access medical care that could be provided here in the Blue Mountains if only our hospital was prioritised for these long overdue upgrades and extra services".
Ms Doyle recently lodged a community petition calling for the funding and planning of a new hospital.
Mr Hazzard said he acknowledged the "concerns of the signatories for the health of their community".
He said a new hospital was a "priority" for the Nepean Blue Mountains Local Health District, which recognised the challenges of the current hospital's infrastructure.
He added the district had "submitted the proposed project through the ministry of health's capital investment proposal process".
The district's CEO, Kay Hyman, also acknowledged the growing calls for a new hospital.
"For almost a century, Blue Mountains District Anzac Memorial Hospital has grown with its community and continues to serve the community for many of their clinical needs," she said.
"Planning for a potential new hospital in the Blue Mountains will take into consideration synergies and networking with the range of expanded health services available at Nepean Hospital which is currently undergoing a $1 billion redevelopment and expansion of clinical services."
President of the Katoomba Chamber of Commerce and Community, Mark Jarvis, welcomed further support for the campaign from the new chairman of the hospital's Medical Staff Council, Dr Stavros Prineas.
"It's wonderful that the skilled and hard working clinicians at the hospital are aligned with our community on the need for a new hospital in Katoomba. They know even better than us that the current facilities are not fit for purpose."