Virgin Healthcare has been announced as the chosen firm to deliver community and out of hours care services from Whitby Hospital.
The contract, worth £6 million, will be in place for the next seven year - starting on July 1.
NHS Hambleton, Richmondshire and Whitby Clinical Commissioning Group (HRW CCG) says it has appointed Virgin because it fits in with wider plans and the vision to re-shape Whitby Hospital.
Virgin will be specifically responsible for the inpatient facilities such as the two wards at the hospital; community and district nursing; physiotherapy and occupational therapy both in the hospital and at home and the minor injuries and GP out of hours service.
Discussions are already taking place to see what other services it can implement or change and the main priority is the implementation of a health hub.
It would be a local space giving advice and guidance and links to voluntary and social services.
Services not involved in the procurement process will not be affected such as outpatient services already provided at the hospital, X-Ray and mental health services.
Virgin was one of two bidders shortlisted in January following a tendering process and will take over from York Hospitals NHS Foundation Trust.