A revolutionary approach to sheltered housing would see residents given equipment to monitor their own health, slashing the number of visits from doctors.
A medical and wellbeing centre with up to 20 beds would be built on the site within the Oakham North development, as well as a learning disability unit with a hydrotherapy pool.
The plans put forward by healthcare firms One Medical and United Health Group are being billed as the future of sheltered housing. They have jointly bought seven acres of land from Hawksmead, the firm hoping to build 1,000 homes on land near Oakham bypass.
Michael Beverley, chairman of One Medical and a member of the board of United Health, said: "The vision that we have for the future care for the elderly is very much that so far as possible people are treated at home by means of assistive technology."
Monitoring equipment would send inform-Hi-tech healthcare information to a control centre and then to the person's doctor if necessary. Residents would also wear pendants with two-way communication enabling them to speak to someone if they needed urgent assistance or had a fall.
The plan includes 80 bungalows and close-care apartments.
The medical and wellbeing centre would incorporate areas for keep fit and other activities, a creche and mother and baby classes and up to 20 step-down beds for patients who have left hospital but are not well enough to go home.
It would be built and run by One Medical while sister company United Health Group would develop and manage the care village.
Mr Beverley said: "It's all about peace of mind. We've done a major trial in Norfolk where it is about to be adopted.
"People learn to monitor themselves and will put in the time if it is their own health to remain well. Where GPs have signed up it has reduced their visits by 70 per cent.
"We are trying to show people in the care communty what the future is going to be and bring it to them."
The two companies have already held discussions with Rutland County Council and Leicestershire and Rutland Primary Care Trust about the proposals.
Mr Beverley said: "It is ideal for Rutland. Rutland has an ageing population and we don't believe the current provision will be enough to deal with them."
A planning application is expected to be submitted during the summer.