It will fund units to support workers looking to establish themselves in a new community by providing accommodation close to work.
Member for Murray Helen Dalton welcomed the funding, saying accommodation was a key factor in attracting and retaining health workers at rural and regional hospitals.
“This is great news which will hopefully attract much needed medical professionals to consider a career in our region,” Mrs Dalton said.
In addition to Finley, the program will be rolled out across Broken Hill, Balranald, Cooma, Leeton, Narrandera and West Wyalong.
An off-site prototype unit has been completed alongside final artist impressions for each site, giving local communities their chance to view the modern and sustainable design of the new units.
A government spokesperson said extensive consultation with clinicians had been undertaken as part of the planning and design process, which has been used to inform the prototype.
The prototype allows the units to be tested before they are built to ensure they will be fit for purpose, safe and comfortable for local and visiting healthcare workers.
Two pre-fabricated accommodation cabins, each with two units, have been delivered and installed at Balranald Hospital.
Works on site are currently being finalised and the units are expected to be ready for occupation in the coming months.
All accommodation will follow the same architectural design, and sustainability will be a focus with the units fully electrified and solar ready.
Offsite construction of the accommodation will start shortly after feedback on the prototype is considered.
The new units will be installed starting in mid-2024 and are expected to become available to key workers in late 2024/early 2025.