Cr Daniels said in the past year close to 20 elderly people had been sent away to other centres for care as there was no place for them in Cloncurry.

"It's really sad," he said.

The $6.5 million aged care facility to be constructed by the end of the year will accommodate 10 residents made up of four high care beds and six low care.

Cr Daniels said the Cloncurry Shire Council was providing $245,000 for an administration centre to ensure the project could continue moving forward.

Mount Isa Health Service District executive director of allied health and Cloncurry project manager Barbara-Ann Gate said the need for an aged care facility in Cloncurry was undoubtable.

"Cloncurry has an aging population and the number of people aged 70 years and older will increase by 50 per cent between now and 2060 (according to Australian Bureau of Statistics data)," she said.

"Cloncurry is also generally a low socio-economic group so the likelihood of them moving to the coast when they're elderly is not high.'

The current hospital building can only cater for three aged persons at any given time so the new facility will more than triple availability.

While the redevelopment project will not allow for any extra positions within the hospital Ms Gate said none of the workforce would be lost.

"Cloncurry is a Multi Purpose Health Service so it's very differently run than a hospital - it is the integration of a variety of health and aged care services provided within a particular community ranging from acute hospital care to residential aged care, community health, and home and community care services," she said.

She said the resulting service would be much like a nursing home for the elderly residents most in need of assistance.

Work is to begin on the project this month with the council-funded administration building expected to be complete in May and the aged care facility later in the year.