The project, which involves a redeveloped hospital and rest-home on the site of the current facility, has won the support of the community it will serve.
About 200 people attended a meeting in Ranfurly on Tuesday night called by Maniototo Health Services Ltd, which runs the Maniototo Hospital and Chalet Home for the Aged.
At the end of the meeting, company board chairman Stuart Paterson asked for a show of hands to indicate support and the response was almost unanimous.
Mr Paterson outlined plans for a new wing on the rest-home building, reconfiguring the building to accommodate both the rest-home and a new hospital.
Various options had been considered but this was the only viable one, he said.
''This is a major exercise for the community and raising those funds will be a big commitment.''
The health company was set up in early 1990. The shares in the company were owned by the Central Otago District Council, the Maniototo Irrigation Company and many of the district's families.
Mr Paterson said the Southern District Health Board had also been involved in planning the new facility and the health company was reliant on its contract with the board, ''so we need to listen to what they say''.
One of the frequently asked questions was why the company was not upgrading the existing hospital.
The cost of earthquake-strengthening the 1929 building was prohibitive and even if that was to be done, the complex would still need to be renovated to bring it up to standard.
Initial designs by Baker Garden Architects for an upgraded facility had just been completed so the health company had just begun seeking funding for the project, he said.
The company had reserves of more than $2 million, so could commit a ''reasonable percentage'' but needed to keep some set aside.
It would approach various trusts about grants and had talked to politicians about Government funding.
A fundraising committee would be set up soon and fundraising would take about a year.
''If we can't make a major step forward in 12 months, we've got a problem.''
Architect Mark Garden said the design was an inverted ''T''.
To keep the project affordable, it was important to keep its footprint within 1200sq m.
It was planned to renovate the existing Chalet building to use as the medical centre.
The rest-home wing of the building had been designed to maximise the sun and take advantage of the good views. The complex would have 29 beds.
The estimated cost was the ''raw construction cost'' and did not include the price of detailed designs or the fitting-out of the facility. Mr Paterson said existing furniture and equipment was up-to-date and suitable for the upgraded complex.
