Davis said the standards for private long-term care will be the same as the public sector.
"We need to become more outcome focused, and provide the highest quality of care," Davis said.
The announcement comes just a couple days ahead of the 2015 budget, which will be tabled on Thursday in the House of Assembly.
Health Minister Steve Kent said that the new long-term care services are very much needed across Newfoundland.
In total, there will be 120 new beds in each of Corner Brook, central and on the Northeast Avalon.