The hospice and the HSE have agreed to move palliative care beds to a new location.
Management at South Westmeath Hospice says it will be the benchmark for end of life care in the region.
It comes as the HSE and the Hospice Foundation reached agreement following a lengthy mediation process.
The Chair of the Board of the South Westmeath Hospice Foundation, Clare Lennon, believes this agreement marks the beginning of a new chapter for palliative care services in the county.
The state-of-the-art facility will relocate four Level 2 palliative care support beds to the new Heartlands Care Centre in Athlone.
She says the hospice will benefit the region:
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