Member for Northern Victoria Mark Gepp said the Victorian Budget allocation would go towards designing the Bright Health Precinct and redevelopment of Alpine Health's Hawthorn Village.

The planning process will map how the current 40-bed aged care facility will be reshaped with a new service next to the Bright hospital that aims to be a better and safer home for older people to age in place.

Residents will live in single bedrooms with a private ensuite.

The project is part of the government's regional and rural public sector residential aged care services revitalisation strategy to modernise ageing facilities.

Alpine Health chief executive Nick Shaw welcomed yesterday's announcement.

"We are incredibly delighted to receive this funding, which will allow us to take the next critical step and move forward to the detailed planning stage of the Bright Health Precinct," he said.

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The precinct, a first for the town, aims to integrate the new aged care facility with acute, urgent care, medical and allied health services and health education.

The estimated total cost is nearly $40 million.

Mr Gepp said the Budget commitment was "great news for local families".

"We'll be planning for facilities that will cater to residents' needs, meaning they can stay connected to their local community," he said.

Member for Northern Victoria Jaclyn Symes said people should be able to access modern aged care services no matter where they lived.

"I've listened to the Bright community about how important this project is to them and this funding is the next step towards delivering these much needed upgrades," she said.

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