The new centre will offer earlier diagnosis of conditions, such as cancer and heart disease.
It will open Monday to Friday which NHSPS says will reduce the need for patients to travel to hospital.
Owned by NHS Property Services, the location was chosen because of its proximity to community services such as the Coventry Urgent Treatment Centre, local GP practices, and mental health services.
It is set to open in late 2026, and see about 90,000 patients annually, providing up to 75,000 additional patient tests a year.
Melvin Henry, Regional Capital Programme manager (Midlands) at NHS Property Services, said: “This ground-breaking ceremony signifies the start of works on a multi-million-pound development which will transform the Paybody building into a dedicated Community Diagnostic Centre (CDC).
“NHS Property Services is focused on delivering a better NHS estate that is fit for the future by investing in and refurbishing buildings where our NHS colleagues can deliver excellent patient care.”
Professor Andy Hardy, CEO of University Hospitals Coventry and Warwickshire (UHCW) NHS Trust, added: “The start of the development of the CDC is a major milestone for healthcare in Coventry, completely transforming the way local communities access tests and scans and receive diagnosis for a range of conditions. It will support communities across the city to live longer, happier lives.
“This activity forms part of our wider commitment to improving health inequalities and ensuring that everyone has easy access to the care they need.
“We’re pleased to be working alongside Tilbury Douglas to deliver the CDC project, and excited to see the positive difference this facility will make.”
David Tighe, Regional director West Midlands at Tilbury Douglas, commented: “We’re delighted to be working in collaboration with UHCW NHS Trust and NHS Property Services to deliver this key healthcare facility for Coventry.
“Our experienced team is focused on ensuring the successful transformation of the existing building into a modern, efficient diagnostic centre.
“Using our extensive expertise in healthcare construction, we’ll deliver a high-quality, sustainable facility that provides long-term benefits for the NHS and the community it serves.”