The 2.36 hectare development, located close to the town centre, will include a new community hospital, a care home, plus retirement and elderly care accommodation.
As project sponsors, ASC have been appointed by NHS Property Services to provide finance, design, build and maintenance services.
Vinci Construction UK will act as principal contractor for the hospital and care home project, providing maintenance for the next 25 years.
Townlands Community Hospital will supply a variety of services, including 18 sub-acute inpatient beds, outpatient and ambulatory care, x-ray facilities, podiatry, physiotherapy and dentistry departments, and a 12-bed palliative care facility.
The existing facility will remain fully operational for the duration of the two year construction programme.
Vinci Construction UK will also design and build the 64-bed care home. With a construction value of £6.1m, the facility will be owned and operated by Oxfordshire County Council and a charitable trust care provider.
The new hospital will, in part, be funded through the release of excess land and buildings for development of 44 assisted-living residencies and 12 key worker residences.
Alan Oliver, Vinci Construction UK’s operations director, said: “Developing the overall site in this way is an incredibly innovative approach.
“It ensures that the NHS receives optimal value for money and we hope that this success can be seen as the exemplar for similar projects nationwide.”