The Victorian Government has confirmed the budget will include $18.3 million to replace the Numurkah hospital, in the state's north.
The hospital has been forced to operate out of a series of tents and a portable building since it was damaged in last year's floods.
The Member for the Northern Victorian region, Wendy Lovell, says the funding will give the town the latest in medical facilities.
"Not only replacing the acute services there, but also adding, for the first time, a dental health service to the hospital," he said.
"This commitment shows that the Napthine Government not only understands, but (also) cares about the needs of country communities."
© ABC 2013
08:27 EST Snow has fallen in parts of Victoria that rarely see snow, as a cold snap grips parts of the state.