The service's upper western sector manager,David White said the Accident and Emergency (A & E) Centre would be transformed into a hospital facility to house five inpatients beds, 15 long-term stay residential beds and some respite facilities.

He said the plan took six months to complete, with work on the new hospital expected to start in May and finish by November.

Mr Batts said the main difference between the present A & E Centre and the new facility would bethe provision of inpatient beds.

"It will avoid, or at least alleviate the transferring of patients to Walgett."

"However patients who are acutely ill will still be transferred," he said.

Mr Batts said the new project would also create more employment in the town, and upon completion would mean more health staff members.

He said there was a need for a service such as this in the Ridge.

"We have experienced problems in the past, but now we will be able to provide seniors with aged care so they can remain close to their family and friends," he said.

Mr Batts said the accommodation available would be upgraded.

He said the project aimed to see 20 to 30 new staff members employed.

"We will try to focus on employing local people, especially as support services staff."

Mr Batts said the new facility would be built behind the A & E on the corner of Opal and Pandora streets, allowing the current infrastructure to be used for the purposes of a community health service.

"We will have visiting specialists, and because of the size of the new rural hospital, will be able to increase the numbers."

"But of course we are still limited in the range of certain procedures compared to what's provided at Walgett, but I believe it is the start of something big," he said.