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A NSW public hospital has taken the surprising step of turning down a multimillion-dollar offer from a coal company on ethical grounds.

Wyong Hospital, located 100km north of Sydney on the state’s Central Coast, had received a staggering $15 million funding pledge from the Wyong Coal Wallarah 2 Project.

But the hospital’s board ultimately decided to knock it back due to possible public backlash and fears of potential health effects from the project.

Central Coast Local Health District chief executive Dr Andrew Montague confirmed the offer had been rejected in a statement sent to news.com.au.

“The district is currently organising to meet with representatives of Wyong Coal to discuss the board’s decision to decline their funding offer,” he said.

“While the district appreciates offers of financial support from the business community, the board determined that this proposal was not appropriate to accept at this stage due to current community sentiment and potential public health effects, particularly in relation to air quality and noise pollution.”

Speaking to The Daily Telegraph, Wyong Coal representatives claim they had been told the donation had been likened to “taking money from a tobacco company”.

The stunning decision has divided members of the local community, who have taken to social media to debate the move.

Some questioned why a hospital in need of funds would reject such a generous offer, labelling it an example of “virtue signalling”.

“You’d think that an outfit like Wyong Hospital with their track record would be avoiding any publicity especially when they are knocking back a $14m donation. ‘Community concern’ was the reason. How many in the Wyong and surrounding areas were ASKED?” one Twitter user asked, while another wrote: “This man made climate change myth is getting more stupid every day. The Wyong hospital board should be fired.”

However, many others were full of praise for the board for taking a “brave” environmental stand.

“That took some guts. Thank you #WyongHospital for clearing the water – health care paid for by polluters perpetuates the problem,” one woman wrote, while another Twitter user said: “Great move Wyong hospital to knock back black coal money putting health and the environment over dubious financial interests.”

“Wonder what people would say if Wyong Hospital had accepted money from the tobacco industry. Dirty money makes you complicit. Good on them,” another added.

According to The Daily Telegraph, Wyong Hospital has attracted criticism over the years for insufficient nurse numbers and long emergency wait times, and in 2019 it made headlines after sending a child home who was later revealed to have a fractured neck.

News.com.au contacted Wyong Coal for comment.