Construction of a long-awaited £5.5m Black Country hospice is finally due to start in October – five months later than expected, it has emerged.

Work on the Walsall scheme was due to start in May but was put back until the end of August. However, a final contract agreement is due to be sealed this month allowing building of the hospice and palliative care centre to start next month.

Patients are due to move into the old Goscote Hospital site in October 2010. Demolition ended earlier this year.

Development includes rehabilitation and specialist nursing, including MacMillan bereavement and counselling services.

A palliative care centre includes 12 inpatient beds and a day hospice for 20 patients and outpatients.

Julian Rainsford, director of estates, said NHS Walsall had secured necessary approvals, including NHS Walsall Trust Board and the Strategic Health Authority, and all site-enabling works were complete – including demolition of the old hospital buildings and alterations to site engineering services.

They were now in the final stages of agreeing a contract with development partner, the Healthcare Improvement Partnership (Wolverhampton & Walsall) Ltd.

“This agreement will be completed in September, with a start on the construction of the new building in October 2009,” he said.

Campaigners have fought for more than two decades for a dedicated hospice for seriously ill adults in the Walsall area. Currently patients travel to St Giles Hospice, near Lichfield, or Compton Hospice, Wolverhampton.

A £1.5 million fundraising appeal has been launched to help pay for equipment and running costs. An inaugural Starlight Walk in Walsall Arboretum on September 11 (7.30pm) will raise funds.