THE ratepayers of the Maranoa Regional Council have given the Queensland Department of Health a $2.77 million gift with the handover of the Mitchell Multi Purpose Health Service (MMPHS) extension for the aged.

MRC mayor Rob Loughnan handed over the MMPHS extension to Queensland Health Minister Lawrence Springborg at a ceremony at the Mitchell Hospital on Tuesday.

Cr Loughnan thanked Maranoa ratepayers for agreeing to council's plan to build this facility.

"While there are never any wins in putting on a special rate for any purpose, the feeling here was particularly strong," he said.

"Whether through loyalty to the existing facility or through not wanting to pay almost $200 per head on top of their rates.

"I know the vast majority of people across the region now accept that this has been a win for aged care and removes a major annual cost from our council's financial statements."

Cr Loughnan said this is probably the first and last example of its kind where the Maranoa council has outlaid almost the entire capital cost of $2.773 million required.

"Today I'm handing it over in its entirety as modern, practical and fully operational MPHS to our Health Minister," he said.

"From here the service will thrive and prosper in Mitchell for many years with operational funding from a combination of both the Federal and State governments."

Maranoa Retirement Village sub committee chairman Rob Cornish said he would like to thank everybody in the district for their support in getting such a fine facility up and going.

"Especially people that pledged money to supporting us in getting an aged care facility in Mitchell," he said.

"Also those people who gave up many hours of their time to make sure we had a fine facility for our elderly people in Mitchell."

Minister for Health Lawrence Springborg thanked the MRC for "this extraordinarily generous gift". "This is an amazing contribution by this community through their council," he said.

"It will be proudly taken over and run in the most exemplary way by Queensland Health."