Zauner Construction Group chief executive officer Garry Zauner said talks were under way with two prospective managers and they were positive.

The BMC is based on the hugely successful Gardens Medical Centre in Albury, but is 25 per cent larger, and will also include 800 car spaces and four high-speed lifts, as well as a larger modern private hospital.

The design progress in under way for the adjoining 82-bed medi-motel, which will also include a 125-person conference facility and a 24/7 nursing facility.

The statement followed rumours an operator had pulled out. 

Ramsay Health Care chief executive officer Paul McKenna said the provider had ruled itself out years ago in favour of refurbishing Dudley Private Hospital.