The 20-bed facility is the result of a long-standing campaign by midlands hospice groups.
The decision to attach criteria to the selection of a site for a new midlands hospice is being described as an "opportunity for impetus."
Minister for Health, Stephen Donnelly, today announced the 20-bed facility would be built on the Arden Lane in Tullamore.
However, that is subject to some criteria being met - such as planning permission and a plan for servicing the site being secured within 12 months.
If those conditions aren't achieved, the Wellwood Healthcare Campus will be chosen as the designated area for the €20 million hospice instead.
Veronica Larkin, of the North Westmeath Hospice Group, which campaigned for the selection of the Arden Lane site, says the next step is to prioritise progress on the development:
Minister Donnelly says the new facility will be a game changer:
The announcement follows a significant fundraising effort of over €1 million as part of the Hooves 4 Hospice project.
As part of the campaign, Tullamore Lions Club agreed to donate the Arden Lane site to the HSE for the development of the new facility, should it be chosen as the designated area.
That site was also the preferred option of both Laois Hospice and the North Westmeath Hospice Group, due to its room for expansion, and ability to accommodate patients on the ground floor.
Offaly Hospice favoured the Wellwood Healthcare Campus, due to its accessibility and lack of obstacles for a planning application.
Minister Donnelly added: "My priority now is to ensure that work on the new Midlands Hospice proceeds immediately to deliver this important development for the people of the Midlands.
I am concerned at any prospect of this project being delayed by years and to address concerns raised with me, I am stipulating that within twelve months, planning for the new hospice at Arden Lane must be granted, along with an agreed road widening plan and funded commitments from the relevant state bodies to bring services to the Arden Lane site."
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