A new planning application has been submitted by Powys Teaching Health Board for the redevelopment of Bro Ddyfi Hospital in Machynlleth.
The original planning applications for the £7.8m scheme had been approved by Powys County Council planners in March 2019.
There are a number of changes to the plans which needs conservation area consent.
This will see the hospital become a community hub – similar to the North Powys Wellbeing project which has been proposed for Newtown.
Director of planning and performance for PTHB, Hayley Thomas, said: “The redevelopment of the hospital remains a key priority.
“The scheme offers an exciting opportunity to establish Bro Ddyfi Community Hospital as an integrated health and well-being facility for the community.”
Ms Thomas explained that the hospital will provide a base for health, local authority and third sector teams allowing them to work together in a “community hub”.
This is supposed to improve access to health and social care, wellbeing, prevention and health promotion facilities for Machynlleth and the wider Dyfi Valley.
Ms Thomas added: “We are also updating the full business case which will include revised costs for the scheme.
“We anticipate that this will be submitted to the Welsh Government by autumn 2020.
“Subject to approval of the business case and funding, we aim to begin on site in early 2021.”
Machynlleth county councillor Michael Williams said that he had seen the plans and supported the application.
The design and access statement by Stride Treglown explain that the proposal is for the redevelopment of the “front workhouse”.
Parts of it will be demolished to allow for various, sound and fire proofing upgrades.
The space is being made more adaptable while “retaining the character of the original workhouse”.
The changes also include replanning of the existing car parking areas and opening up of the entrance areas.
In December 2017, Welsh Government Health Secretary Vaughan Gething announced a £7.8m scheme that would see Bro Ddyfi Community Hospital become a hub for a range of health and social services.
It was part of an announcement of £68m to provide 19 new integrated health and care centres around Wales.
Aberystwyth’s Bronglais Hospital is the nearest district general hospital to Machynlleth it is 18 miles away (32 minutes) while Welshpool’s Victoria Memorial Hospital is 37 miles away (56 minutes).
For specialist services, residents may travel as far as Swansea or Wrexham.