The service will be ready by the end of 2007, managers said

The 30-year public-private partnership project will be built and maintained by the Robertson Group and replace the Alloa Health Centre.

The hospital will provide in-patient and day services, serving the region's 47,000-strong population.

The health centre will provide primary care to Alloa's 25,000 people and see 800 patients a day.

NHS Forth Valley chairman Ian Mullen said: "By the end of 2007, the people of Clackmannanshire will have a new, state-of-the-art community hospital and a replacement for the existing Alloa Health centre.

This is the latest in a series of major partnerships with the NHS in Scotland for Robertson Group Bill Robertson, Executive chairman

"Community hospitals like this are absolutely critical to the success of the Forth Valley healthcare strategy and will help us to achieve our aim of providing more care closer to people's homes."

The hospital and replacement health centre will be built on the site of Alloa's Sauchie Hospital.

The new centre will include three GP practices and nursing and dental services, while the community hospital will incorporate 45 in-patient beds for frail older people as well as community mental health and social work teams.

Contract negotiations

Robertson Group Executive Chairman Bill Robertson said the project would provide modern patient services in high quality surroundings.

He said: "This is the latest in a series of major partnerships with the NHS in Scotland for Robertson Group.

"We look forward to working with NHS Forth Valley and to the conclusion of formal contractual arrangements later in the year."