Plans for up to 160 new community nursing beds at two hospitals on the outskirts of Bristol have been given the go-ahead by the NHS.
The "exciting" proposals include a new nursing home on the site of the former Frenchay Hospital.
In addition, a similar home would replace Thornbury Hospital, including a specialised service to help keep frail and older people out of hospital.
The new facilities could be open from 2020/21 subject to planning permission.
The new Bristol, North Somerset and South Gloucestershire Clinical Commissioning Group (BNSSG CCG) is working with South Gloucestershire Council on the project.
Councillor Toby Savage, the Conservative-led authority's deputy leader, said: "This is an exciting opportunity to genuinely integrate health and social care.
"Having as many services under one roof as possible maximises the opportunity to ensure that patients are getting the right care for them to maximise their independence."
But opposition Liberal Democrat councillors say they have not been consulted about the plans, and question where the money will come from.
The CCG eventually wants to develop a centre of excellence for intensive rehabilitation at the Frenchay site
There are also plans to focus more investment in rehabilitation support for people in their own homes.
Frenchay Hospital closed in 2014, with the majority of services moving to a new building at Southmead Hospital.
Campaigners had been promised a new community hospital on the site.