PLANS to build a £21m mental health hospital have been backed by two primary care trusts.
The Derwentside trust and the Durham and Chester-le-Street trust pledged their supporting for the new development at recent board meetings.
The hospital, which will be built on the outskirts of Durham City, will replace the outdated County Hospital, in Durham, and the Allensford Ward, at Shotley Bridge.
The development will be designed to provide a safe, homely and therapeutic environment for people experiencing mental health problems.
The unit will provide inpatient beds, as well as a range of other services.
Sandy Taylor, chief executive of County Durham and Darlington Priority Services NHS Trust, said: "This is excellent news.
"People experiencing mental health problems should be cared for in an environment that has been designed to meet their needs.
"A new hospital for the north of the county really complements the investment in community-based services and ensures service users receive inpatient care in a state-of-the-art unit."
Earlier this month, The Tony White Unit, in the County Hospital, stopped taking new admissions, and people who need intensive psychiatric care will be treated in the newly-opened West Park Hospital, in Darlington.
The unit in Durham will close on March 31.
Andrew Young, chief executive of Durham and Chester-le-Street Primary Care Trust, said: "Both trusts are committed to modernising and improving local mental health services and looking at ways to ensure the continued development of all our health services.
"The new hospital in north Durham will provide a modern and safe environment for people with mental health problems."
Proposals for the new facility were drawn up following a three-month public consultation last year.
Patients, carers, local councillors and voluntary groups were involved in reviewing options and choosing the preferred location of the new hospital.
The plans will now go to County Durham and Tees Valley Strategic Health Authority for approval. If backed, more detailed work on the design of the hospital can begin and the facility could be open by the end of 2007
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