A cross-party call for a multi-million pound Centre for Excellence failed to acquire government support at Jeremy Hunt's spring budget.
The Labour-led £40 million bid hopes to open a new Centre for Excellence in the towns University Hospital for Orthopaedics, Gynaecology and General Surgery.
Hartlepool Councillor Jonathan Brash, also a candidate to be Hartlepool's MP, has said the news is "disappointing" as the Chancellor made no mention of the bid in his speech.
Read more: Budget 2023: North East MPs react to Jeremy Hunt's budget
Councillor Brash said: "It's extremely disappointing that the Conservatives have chosen to prioritise a tax break for the super wealthy over places like Hartlepool.
"There was no mention of investing in Hartlepool's hospital, no support for lowering our council tax and no support for small businesses.
"After 13 years there was nothing for our town."
The bid, submitted by the North Tees and Hartlepool NHS Foundation, is currently backed by 13 councillors including Mr Brash and will be put forward to the council at its next meeting later this month.
Ahead of the next full council meeting, The Northern Echo approached Hartlepool Borough Council to find out whether the bid would be backed.
Read more: Chamber, WBD and Sage give their verdict on Jeremy Hunt Budget
A spokesperson said: "Any motion which is submitted to Full Council will be considered and discussed at the meeting of the Full Council."
The Northern Echo has reached out to Hartlepool MP Jill Mortimer for comment.
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