This sub-programme coordinates and funds health care infrastructure to enable provinces to plan, manage, modernise, rationalise, and transform infrastructure, health technology and hospital management, and improve the quality of care. This sub-programme is responsible for the Direct Health Facility Revitalisation Grant (HFRG) and the Health Facility Revitalisation component of the National Health Insurance indirect grant. ​

In 2022/23 financial year, the sub-programme surpassed all the set annual targets. A total 41 Primary Health Care facilities were constructed or revitalised, 25 hospitals were constructed or revitalised and a total of 157 public health Facilities (Clinics, Hospitals, Nursing colleges, EMS base stations) were maintained, repaired and/or refurbished.

During the reporting period, the sub-programme assisted Provinces to accelerate revitalisation of Health Facilities and complying with Government Immovable Asset Management Act (GIAMA) by providing infrastructure funding through the HFRG, which is a direct funding implemented by provinces and In-Kind Grant, which is an indirect funding implemented by the NDoH. ​

​The HFRG in 2022/23 financial year has been allocated R6, 779, 546 billion and​ R6, 460, 364 billion (95%) was spent by the end of March 2023. The In-Kind Grant budget in 2022/23 was R1, 010, 476 billion and R983, 861 million (97%) was spent. The underspend budget will be applied as a roll over in 2023/24 financial because they are contractual committed on site for projects that failed to reach their set milestones in 2022/23 financial year.