Maniototo Health Services Ltd general manager Geoff Foster announced last week that Stewart Construction had won the building contract and would begin work in April.
Mr Foster said finding a builder was "very pleasing".
"We’re pleased we’ve achieved it in the time we set for it.
"We can get it started before this winter and kick off the ground work."
Stewart Construction is an Otago-based company with offices in Dunedin and Alexandra. Mr Foster said the company was a good fit for the build.
"Being an Otago firm they are well aware of our climatic conditions; they are a size large enough to undertake the task comfortably but still small enough for us to be dealing with owners."
Project managers Logic Group recommended Maniototo Health Services Ltd choose Stewart over three other companies.
Mr Foster would not reveal the contract amount but said although the tender values were close, Stewart was a clear leader.
He said the contract was within their price range and the total project, which included the full revamp of the rest-home building and dealing with the existing hospital building, was expected to be no more than $7 million.
Stewart Construction managing director David Grant expected all work to be complete in 13 months, starting on April 9.
"It’s a real privilege to be awarded the tender. We’re looking forward to starting on the site."
Site managers would be from Dunedin but would live in Ranfurly during the construction process. Teams from both Central Otago and Dunedin would work as builders on the project.
Mr Foster expected the residential part of the hospital to be ready by April 2019 and the medical centre and community facility with X-rays and specialist appointments to be ready in 13 months.
What to do with the original hospital building had not been decided.
Mr Foster said he was in "positive" discussions with the Government as to whether the $1 million pledged by ex-Labour leader Andrew Little in July last year would come.
They were still accepting donations.
Donations and government funding would mean they would not have to rely as much on borrowed funds.
