The Integrated Care Services Hub will be built in the grounds of South Tyneside District Hospital.
The facility will incorporate 80 beds with around 30 people living on the site. Features include light-filled dining and social areas, en-suite bathrooms, mini-kitchens, spaces for relaxation and access to landscaped gardens.
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The centre is part of the local council's response to the ageing population of the region and increasing numbers of people with dementia.
Andy McLeod, Managing Director for Robertson Construction England said: "We are extremely proud to have been chosen to continue the redevelopment of healthcare services for the people of South Tyneside. The new Integrated Care Services Hub will bring a range of services under one roof for the first time."
Steve Williamson, South Tyneside NHS Foundation Trust's Chief Operating Officer, said: "This is a very exciting project for us, but most importantly of course, for the people of South Tyneside and we are very pleased indeed to have appointed Robertson."
(LM)
