South Coast MP Shelley Hancock is disappointed at the decision of the local health district and Health Minister to not proceed with a CT scanner at Milton-Ulladulla hospital.
Mrs Hancock said she was "very disappointed" at the outcome and for those who were committed to fundraising.
"I'm very disappointed with the outcome, very disappointed for those who are so committed to fundraising and so committed to actually achieving for their community and it seems like I've let them down," she said.
"So far I've tried pretty hard and I won't give up, that's my main message. I will not give up on them, it's important."
The comments come after local campaigner Peter Still described the project as "dead in the water" following the decision from the Illawarra Shoalhaven Local Health District and Health Minister to not proceed with the project because the number of patients needing a CT scanner was "well below the minimum".
Shelley Hancock said the statistics quoted by ISLHD, that only five patients a week required CT scans were "skewed" and did not paint the full picture.
"They're suggesting there's not enough use for it in Milton-Ulladulla, my view is there's no use because they're going to Shoalhaven hospital to get the X-rays," she said.
"You don't have anything in those statistics included to show that a whole lot of people are having to travel to Nowra.
"There's no recognition of the fact that there's a huge growing community... and that huge and growing community obviously means that there is a huge and growing need for x-rays and a CT scanner."
MP Hancock said the next steps for her were speaking to the Health Minister and advocating for Milton at the next health district meeting.
"My next thing is to actually go to the Minister again and say, I know what the health district is saying to me and raise it at the next health district meeting as well," she said.
"All the other members... they're all sort of northern district Illawarra they're all talking about the Shellharbour Hospital.
"But I'm the voice for Milton and so what they've got to do is listen to me at those meetings, because they get absolutely wound up in the big hospital stuff, the big picture stuff - so the next meeting I'm going to raise it again.
"You just can't give up, you just don't give up. We will get it, I'm confident that we will get it."