The 14,728sqm scheme was given the planning go ahead a year ago when Vinci was confirmed as main contractor.
The scheme is being developed by Prime and funded by M&G, with additional investment coming from HCA UK.
The 138-bed specialist hospital is being built on the Queen Elizabeth Hospital Birmingham campus, for a partnership between HCA Healthcare UK (HCA UK) and University Hospitals Birmingham NHS Trust Foundation Trust (UHB).
It will be equipped with the latest technology to provide some of the most complex surgical and medical procedures and treatments across cancer, cardiology, neurology, hepatobiliary, urology, orthopaedics and stem cell transplantation.
Michael Roadnight, VINCI Regional Director said: “This state-of-the-art specialist hospital will provide first class healthcare provision for patients in the region.
“We are delighted to have commenced construction works on this exciting project which has provided the opportunity for VINCI Construction UK to add real value from our vast experience in the Healthcare sector.
“The pre-construction phase has been based on collaboration with all stakeholders and we look forward to working with HCA UK, Prime, UHB and our partners during the construction phase and beyond.”
Construction is expected to be completed in 2022.