Health and Social Services Minister Mark Drakeford announced the purchase of land for the Cylch Caron Integrated Resource Centre in Tregaron.
The site has been bought with £727,000 of Welsh Government funding.
Professor Drakeford, together with Hywel Dda University Health Board chief executive Steve Moore and Ceredigion County Council leader Councillor Ellen ap Gwynn unveiled a sign at the site to mark the purchase of the land.
The Cylch Caron development will bring together health, housing and social services on one site and will replace the existing Tregaron Community Hospital, Bryntirion residential home and GP surgery.
Professor Drakeford said:
“I’m pleased to be able to announce this important step in the development of the new Cylch Caron centre. Last year, with Lesley Griffiths, the Minister for Communities and Tackling Poverty, I announced £5.8m for the new centre, which will bring important services under one roof, closer to the people who need them.
By working together and focusing on early intervention, these services will help people to live active, independent lines.”