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Peterborough City Hospital's planning to build £5 million worth of staff accomodation.
The trust that runs the hospital told Heart they need the new building to replace old accomodation and to attract medics, as they can't run the risk of having doctors and nurses not wanting to work for them.
That's despite already having a deficit of almost £40 million.
Heart's been told the new accomodation won't be luxurious, and will only include facilities that are needed by the staff.
They expect the new building to house 111 people, and are waiting for planning permission to be approved.
The trust told Heart if it all goes through the work will definitely be starting this year.
A spokeswoman for Peterborough and Stamford Hospitals NHS Foundation Trust said: "The new proposed housing for staff at Peterborough and Stamford Hospitals will replace old, unsuitable accommodation with modern compliant residential accommodation.
This will allow the Trust to accommodate medical professionals in training and will appeal to staff moving from outside of the area.
The new building will cost an estimated £5.2 million and, if approved by planners, would be funded by external support through Monitor and the Department of Health as part of its normal funding for NHS Trusts."