Construction on the new $22.7 million Charlton hospital is now under way and completion is expected in October 2014.
In January 2011, the old Charlton hospital was devastated by flood waters that caused extensive damage all through this quiet river town in north-west Victoria.
With the damaged hospital now demolished, the new facilities signal the beginning of a new era for Charlton health care.
"The old hospital served this community well for many years and I want to pay tribute to all the staff who offered such great services here for many years," Minister for Health David Davis said in an October 9 statement.
"I'm sure the new health services building will play a similar role as the heart of health services in this area and will serve this community for many years to come," he said.
The new hospital will include 13 residential aged care beds, an urgent care service, a range of primary and allied health services, GP counselling and treatments rooms.
Also planned is a co-located ambulance station and helipad to ensure rural Victoria has the key infrastructure in place to deliver high quality healthcare to the wider community.
"The coalition government is committed to the expansion of health care facilities across regional and rural Victoria to meet the growing demand into the future," Mr Davis said.
The Charlton hospital is just one part of a $4.5 billion investment in Victoria's health services.
If you would like the option of being treated as a private patient in a private or public hospital, you may want to consider your health insurance options.