Works on a €40 million healthcare hub in Paola are under way after the original tender was withdrawn in September following a decision by the appeals court.
Speaking during a visit to the site on Monday, Health Minister Chris Fearne said the government was placing emphasis on primary healthcare in the community.
Building the hub will cost €25 million, with the total investment to get the hospital up and running reaching €40 million. Of these, €33 million will come from EU funds.
Mr Fearne said the regional health centre would offer various services, including dentistry and mental healthcare.
The centre is expected to be completed in three-and-a-half years’ time, and authorities expect it to soak up some of the pressure placed on Mater Dei Hospital.
It will be named after the late Vincent Moran, a former health minister who passed away last November.
An adjacent carpark is being built to lessen the impact on residents, he said.
The Health Minister said the government would be publishing a 10-year mental health strategy. Part of this strategy would strongly emphasise the importance of community care, he added.