Councillors in Bath in Somerset voted in favour of the Virgin Care deal with 35 votes to 22 at a council meeting last night.
The deal marks the first time a council's core adult social work services will be delivered by a for-profit private firm.
The seven-year contract is thought to be the financially largest deal the company has ever won from a single authority.
Preparations will now begin for the business to take over running adult social care, continuing healthcare and children's community health from April 2017.
Cllr Vic Pritchard, cabinet member for Adult Social Care and Health at Bath and North East Somerset Council said: "The Council has voted to follow the recommendation of a wide range of service users, carers and subject matter experts who have dedicated hundreds of hours to scrutinising the bids and really understand how services need to change.
"This decision marks the beginning of an exciting new chapter in the integration of health and care services in Bath and North East Somerset.
"Local people can look forward to a more joined up and personalised service in the future with the focus firmly on prevention and supporting people to maintain their independence."
Since 2006 Virgin Care has treated more than five million people via around 300 NHS and social care services it runs or oversees.
Unlike in children's services, there are no laws preventing councils from delegating statutory adult social work functions to profit-making providers.
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