Thousands of pounds will be spent on social care in Sutton and Merton.
The total of £931,110 will allow people to leave hospital earlier and receive better care at home.
The money comes from an extra £150m announced by the Coalition Government to be spent on shortening hospital stays during the winter period.
The cash will be used to access various preventative services such as better home care support, crisis response teams and specialist equipment for people in Sutton.
Liberal Democrat Health Minister and MP for Sutton and Cheam, Paul Burstow said: “By reinvesting these savings in social care, we can offer more help and support to older people leaving hospital.
“It is absolutely crucial that the NHS and local authorities work together to help people leave hospital when they are ready. The benefits are on all sides - patients get to go home with the support they and their families need, and hospital beds are freed up.
“This money will help cut the delays in getting the equipment and adaptations that people can need to enable them to live independently at home - saving them from an unnecessary stay in hospital or going into residential care.”
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