The government has leased 50 bed spaces from two private homes for the elderly for patients classed as having high or medium dependency.
The agreement was reached with Casa Pinto in Qormi and Golden Care Home in Naxxar, which will each make 50 beds available for the purpose.
The deal will cost the government €2.4 million annually.
Parliamentary Secretary Anthony Agius Decelis said that despite heavy investment in the government's own homes for the elderly, demand for such residential services remained high.