A £6m development of a healthcare hub has been announced by the government, to help meet demand in Bedford, they said.
Gilbert Hitchcock House will be refurbished on the North Wing site of Bedford Hospital, on Kimbolton Road.
The money is going to Bedfordshire Clinical Commissioning Group (CCG) and Bedford Hospital NHS Trust.
An additional £1.1m is to be spent on improving access to physiotherapy services.
A spokesman for Bedford Hospital said it would "add on and improve what is already there".
Three GPS surgeries will be brought under one roof, alongside community, mental health and specialist services.
It will also mean a bigger physiotherapy service.