An expansion of Gateway Health will address growing demands for telehealth, family violence and drug and alcohol services.
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Gateway has purchased vacant land at 40 Mackay Street in Wangaratta, close to the current building.
Chief executive Leigh Rhode said the lack of space at their centre had been felt even more with social distancing requirements.
"A facilities master-planning process started with Wangaratta, because that is where our pressure points are," she said.
"The site we're at doesn't have the capacity to go up or out any further.
"This land was in an ideal location and allows us to accommodate our vehicle fleet, which is needed for outreach.
"We want to be able take on more student placements, and we have allied health and nursing ancillary services that we'd like to grow."
The current centre with its open-plan design doesn't support telehealth growth.
Ms Rhode said more rooms for private consults and the in-demand men's behaviour change program would be ideal.
"It's creating spaces for all types of group therapy," she said.
"The big areas we are responding to, unfortunately, are family violence and drug and alcohol services.
"We have also seen growth in psychosocial and NDIS support ... and counselling."
The Gateway Health GP Clinic will stay at 45 Mackay Street and will create a health hub with the new building and the nearby headspace satellite centre.
Ms Rhode said design for the new building was very much open, with involved consultation to happen.
"I don't see building starting for quite a while yet ... the focus this year will be on planning work and we'll see how ready we are in the following year to take the next steps," she said.
"Right across our footprint of Ovens-Murray, we're thinking about out future direction."
Gateway Health chair David Koschitzke said the board's decision to expand was a milestone.
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"In Wangaratta, it's particularly important to increase our capacity to deliver our programs and services, to improve the technology on hand for our clients and staff, and to create the best possible environment for our community," he said.
"This is an exciting opportunity for Gateway Health to create a contemporary facility that will meet the current needs of our staff and clients and is able to grow with us."