Victorian Premier Daniel Andrews at Rutherglen aged care site

Daniel Andrews on Friday August 25 turned the first sold on the new Indigo North Health aged care complex which will replace the Glenview nursing home as well as its service base.

The triangular piece of land on the southern end of Main Street will host 50 beds, an increase of 10 at the existing aged care premises.

Albury firm Zauner Construction is building the centre with 170 workers involved before it is completed in 2025, four years after being flagged in the state budget.

Mr Andrews said Victoria was the only state that continued to have public ownership of aged care facilities and it ensured Rutherglen was able to have such a hub.

"If you don't have a public sector aged care offering, if you just run aged care for profit instead of for people, then private sector investment will go where the larger numbers of people are," Mr Andrews said.

"They'll go where the profits are to be made and that won't always be in regional communities and it certainly won't be in smaller regional communities like Rutherglen and/or others within the Indigo Shire.

"We think that we've got this balance right, we haven't sold off aged care as was planned by the other side of politics, we have stayed in this important part of our health system."

Indigo North Health chief executive Shane Kirk said having a fresh installation was needed with some sections of Glenview antiquated.

"Our current facility started out in 1930 and we are still working in parts of that building, so to be able to enable all of our community to access residential aged care and community health services in a state-of-the-art building is absolutely fantastic," Mr Kirk said.

Indigo North Health first purchased the land five to seven years ago with the aim of developing a new set-up on site.

The design will allow for a further 10 beds to be added in the future to take the overall number to 60.

Zauner chief operating officer Ronan Pringle said initial works since setting-up at the site in June had included removing contaminated soil and now installing plumbing equipment.

Following levelling of the site, it is expected slab and framework should be completed by Christmas, subject to weather.

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