The sod has been turned on as work has now begun on the new Lifford Community Hospital.
The construction tender process has been completed and a contractor has been appointed to the €2.5 million development, with an eight month duration contract.
A new primary care centre and 25 beds are included in the HSE capital plan.
Chairperson of Lifford Community Hospital Action Group John Quinn says the area has been in need of a Community Hospital.