More than £2.5 million of funding is being made into health and social services in Newtown.
The Welsh Government has said it is providing £2.554 million from its £100 million Transformation Fund to "back new ways of delivering health and social care services in the town.
Health Secretary, Vaughan Gething said the money will be used to help health and social services work more closely and deliver care closer to people’s homes. If successful it could then be rolled-out across the whole of Wales.
The Fund has been created to support the scale-up of new models of seamless health and social care as part of the Welsh Government’s long term plan for health and social care, A Healthier Wales.
The funding is for the North Powys Wellbeing programme, which will help Powys Regional Partnership Board to work with local communities and partner organisations to develop a new way of providing services closer to home.
The programme will be the largest ever intergenerational health and wellbeing programme in Powys, providing an opportunity for local communities to work together with health, social care, education, housing, leisure, the third sector and wider partners.
Mr Gething said: “I am pleased to announce the North Powys project will be the latest to be backed by the Welsh Governments’ Transformation Fund. Our health and social care services are set to face greater and more complex demand in the future as our population ages.
"We need to develop radical new ways to deliver our health and social services if we are to meet the demand in the future.
"This will require new ways of working and bringing different services together to deliver services closer to home and reduce pressure on hospitals.
"Our long-term plan for health and social services, A Healthier Wales details how we can achieve this. Our £100m Transformation Fund will help us realise that vision by funding innovative projects that have potential to scale up and be used across Wales.”
Cllr Rosemarie Harris, Leader of Powys County Council, said: “This truly is a once in a generation opportunity to improve health and wellbeing across north Powys.
"Together our council and health board are already leading the way in Wales as the first region with a joint health and care strategy agreed in 2018, built on the issues that the people of Powys said were important to them. This funding from Welsh Government will help us to ensure that we are taking practical steps to turn this into reality.”
Carol Shillabeer, Chief Executive of Powys Teaching Health Board and Chair of Powys Regional Partnership Board, said: “This programme is first and foremost about ensuring the best opportunities for health and care across the whole of north Powys.
"But, central to achieving this is the development of a state of the art new facility in the Newtown area to offer more services locally and bring the latest technology and training to Mid Wales.
"This will be based at the heart of the town, and this funding from Welsh Government means that we can now start a big conversation with residents, staff and partner organisations to agree the services it will offer and how will it will connect with other health and care facilities in North Powys. We are looking forward to working with local communities to develop and implement this new way of working together.”
Welcoming the news, Montgomeryshire AM, Russell George, said: “A new health and social care facility based in Newtown is a golden opportunity for the town and surrounding area.
"The funding announcement is an initial sum, and further funding will have to come forward as the project and new facility moves ahead.
"This is a fantastic opportunity which will allow for additional health and hospital services to be based in Newtown.
"I have been raising the need for a new health facility with the previous and current First Minister of Wales, and no meeting that I have had with Powys Teaching Health Board's CEO takes place without a discussion about a new facility based in Newtown.
"The fact that this funding and project is now a reality is good news, but I would also urge caution, as planning and the new build that will take place will take some years, and in the meantime we have to ensure that current GP and hospital services are supported and strengthened."
