Demolition was due to start yesterday as the site is prepared for use once again - hosting primary care, unscheduled care, community mental health, substance misuse, outpatients and diagnostics services.
Parts of the site, first used in 1837, will be saved for their historical value. The redevelopment is likely to take four years to complete.
Another health landmark in the city, the former City Asylum, now the psychiatric hospital at Whitchurch is also to be redeveloped with a £68million new facility due to open to patients in 2010.
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