A district council is funding a new hospital in a Worcestershire town.
Wychavon District Council is spending £6.7m on a 26-bed hospital in Pershore which it will lease to South Worcestershire Primary Care Trust.
The building, which will also house a GP surgery, is being funded from the sale of housing stock and replaces a cottage hospital.
A council spokesman said the trust would get a more affordable deal than if it was done through private finance.
The hospital is expected to be open in September.