The funding will focus on patients whose surgery has been delayed due to COVID-19 (coronavirus).
The funding will allow public patients to be treated in private hospitals while increasing surgery capacity at public hospitals.
At normal capacity, NSW public hospitals deliver around 235,000 elective surgeries per year.
Surgeries across both public and private sectors are on track to perform at 75% by the end of June 2020.
NSW Health Local Health Districts will balance the return of elective surgery with the need to maintain hospital capacity for any further potential cases of COVID-19.
Surgery lists are being closely monitored and any patient whose condition changes or deteriorates should speak to their treating clinician.
Health Minister Brad Hazzard said one of the many sacrifices made by patients due to the pandemic was delays to some categories of elective surgeries.
"We are working as fast as we can to fast track those patients whose surgery has been disrupted," Mr Hazzard said.
The NSW Government has committed $800 million in additional funding over two years on top of the 2019-2020 Health Budget of $26.7 billion. The funding will continue to boost ICU capacity, purchase additional services and medical equipment, and help respond to COVID-19 across NSW.
Learn more about the NSW Government's response to COVID-19.
