Health Minister Doug Currie says the expansion will help reduce wait times.
The expansion also includes additional consultation rooms for more pre- and post-surgical procedures.
As well, there will be a dedicated space for patients who have had caesarean sections to ensure their privacy.
A separate ophthalmology surgical suite is being created for cataract surgery.
Overall, the government says the space for day surgery is being more than tripled to about 21,000 square feet.
The government says this is the first renovation to the surgery department since the hospital first opened 30 years ago.