Several bursting hospitals will receive 22 short-stay units under a state plan to relieve pressure on emergency department.
The NSW government on Monday announced it would direct $130.7 million to building the units this financial year.
Premier Chris Minns and Health Minister Ryan Park hope the move will ease pressure on overnight and emergency departments.
Campbelltown, Nepean, Maitland, John Hunter, St George and Wyong hospitals will receive the additional spaces for treating those needing care past initial assessments.
A further eight spaces will be built over the 2027/28 financial year as the state's public hospitals have noted more than 500,000 emergency short-stay admissions since the beginning of 2024.
Health Services Union NSW secretary Gerard Hayes told AAP the investment was essential to smooth functioning EDs.
But the plan is facing fierce criticism from Opposition Leader Kellie Sloane.
"Our emergency departments are in crisis and we need more than band-aid solutions … 22 beds or recliner chairs isn't going to make a huge difference," she said.
"This is a welcome announcement in some respects, but people who have been waiting in our emergency departments for too long are going to be shaking their heads."
She also backed an inquiry into NSW's health system, after reports people within the hospital system felt back-stabbed following Mr Minns' election campaigning.
The premier's pre-election social media advertising included panning hospital wait times and inadequate staffing.
One Bankstown nurse told News Corp the premier had promised the world before failing to deliver for health staff.
Mr Minns said his government had kept promises to invest in hospitals and reduce the wages freeze for public health care workers.
"These investments will make a difference. It can't be done overnight, but as a result of this investment, we've been able to recruit over 8000 nurses for our public hospital system," he said at St George Hospital on Monday.
He took aim at the coalition's previous handling of the health system, and pointed to beds occupied by those waiting for aged care placement - a responsibility of the federal government.
The NSW Nurses and Midwives Association continued its calls for more staff to fix patient flows in emergency.
"For these units to succeed, we need the workforce to staff them safely ... beds don't care for patients, nurses do," general secretary Michael Whaites said.
NSW's emergency room dramas came to a head earlier in August.
Mr Minns was forced to instruct patients to avoid emergency rooms where possible following a record day of presentations.
Nearly 10,000 patients presented to Sydney EDs on August 3, the biggest winter day on record, according to the government.
Australian Associated Press