NSW government politicians from the region have backed a group of Bulli residents who say they have growing concerns about the "dangerous" parking and traffic around Bulli Hospital.

The Old Bulli Hospital Community Action Group, made up of dozens of residents, is trying to stop NSW government developer Landcom from lodging a plan to build housing on the old hospital site while parking remains a problem at the new hospital.

The group says it has been told Landcom will lodge a DA with Wollongong City Council this month, so this is the "last chance for the government to fix the parking problems".

In early proposals, Landcom has set out three different concepts for its redevelopment of the 2.4 hectare old hospital site which would deliver between 50 to 70 homes, with 10 per cent of these designated as affordable.

Resident say this will only worsen an already dangerous situation around the hospital, and said they want part of the old hospital site to be set aside for car spaces servicing the new facility.

They say the old hospital had about 110 off street car parking spaces for patients, visitors and staff, while the new larger one has 46 spaces.

"Since the new hospital opened, there's been at least six serious motor vehicle accidents on Hospital Road and many more less serious ones," the group's spokeswoman Margaret Hutchinson said.

The community group also wants the planned housing numbers cut to 30, with all homes affordable for health workers.

The group is also concerned parking around the hospital will worsen as staff numbers increase with the palliative care and rehab wards from Port Kembla Hospital moving to Bulli.

Nursing staff have also raised this issue, with some saying they have been told by management to park down the road at Bulli Woolworths.

Heathcote MP Maryanne Stuart met with the residents in July, and said she would be raising their concerns as a priority.

"Their issues are primarily around safety and the traffic congestion," Ms Stuart said.

"It's a terrific hospital, and we are getting more staff there, so they are concerns about the fact that there has been no parking accommodated for that."

Ms Stuart said she was speaking to Minister for Health Ryan Park, as well as Minister for Planning Paul Scully about the issues.

Mr Park, also the Minister for the Illawarra, said he has long voiced concerns aboutparking in and around Bulli Hospital and urged the community to have their say in the development process.

According to Landcom, the development application will be lodged with the council by "mid-2023".

"As a State Owned Corporation we are obligated to act commercially and cannot progress projects that are not financially feasible," the corporation says on its website.

"As such, we need to balance community and stakeholder feedback with other planning considerations, such as site constraints, planning controls, and Landcom's housing affordability, diversity and sustainability targets."

Landcom said initial modelling showed traffic generated by the proposed new homes will contribute "a minor increase to local traffic" on Hospital Road and Organs Road.