Health and social services operator Care UK plans to develop ten new Suffolk homes for £60m.
The plans come after Suffolk county council voted to transfer the management of its homes to Care UK.
The Conservative-run council said the 526 places at its 16 homes would be replaced by 680 beds.
The plan means four county-run homes in Hadleigh, Ixworth, Beccles and Wickham Market will be closed.
Care UK plans to build the ten homes in Ipswich, Lowestoft, Bury St Edmunds, Framlingham, Stowmarket, Haverhill, Mildenhall and Eye.
The council will buy places at the Care UK homes on behalf of its current residents or others requiring supported housing.
annabel.dixon@estatesgazette.com