A contract has been awarded to build the new £3.5m care unit in Heanor which is set to replace the former hospital.
The contract for the healthcare building project has been awarded to A&S Enterprises Limited.
A start date for work is expected to be early November, which comes a year after the existing asbestos-riddled building was demolished.
William Jones, chief operating officer for Derbyshire Community Health Services NHS Foundation Trust, on behalf of the Heanor healthcare redevelopment, said: “We are delighted to be able to announce the award of the contract for this important project and we look forward to celebrating the start on site in the coming weeks.”
The total project cost has increased from an estimated £2.5million to £3.5million, which includes building costs as well as other associated costs of kitting out, furnishing and moving services in.
Jonathan Leese, marketing manager for A&S Enterprises said: “We have a wealth of experience in healthcare projects including Ilkeston Medical Centre and Ilkeston Hospital.
“The majority of our workforce are from Derby and we are keen to use local companies on our projects. Our contracts manager lives just three miles away, so this is very much a local project for us.”
The memorial hospital has been closed to patients since September 2013, after asbestos was discovered in a boiler room during a routine inspection.
Formal approval to go ahead with the plan to demolish and replace with the new care unit was given by the Southern Derbyshire Clinical Commissioning Group (CCG) governing body in October 2014, after a three-month consultation period.
The new centre will provide services that meet the health requirements of the population. This building will include all existing services with the exception of inpatient beds, along with a range of new services which are required to support the health of local people – with a particular focus on mental health and dementia services.