US-based healthcare system Franciscan Alliance has unveiled plans to build a new Michigan City hospital with an investment of $175m.

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According to the health ministry, the new Franciscan St Anthony Health Michigan City campus will be constructed on a 70 acre site. It will serve patients from Porter and LaPorte counties and southwest Michigan.

Franciscan St Anthony Health interim president Gene Diamond was quoted by The Herald Argus saying: "We have discussed this project and the need for a new hospital building for more than a year.

"This is a project that is good for Michigan city and good for healthcare in northwest Indiana."

"It is exciting to get to this point and to know a new hospital is right around the corner. This is a project that is good for Michigan city and good for healthcare in northwest Indiana."

The new facility will include 120 private inpatient rooms, in addition to outpatient services and a medical office building.

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Franciscan Alliance subsidiary Tonn & Blank is the general contractor for the project, which will start construction in spring 2016 with plans for completion in 2017.

Franciscan Alliance president Kevin Leahy was quoted by the publication saying: "Tonn and Blank has done an outstanding job for us in the past and we know their team, who live and work in the surrounding area, will build a hospital that will be a source of pride for the Michigan city community."

Franciscan Alliance, which was previously called Sisters of St Francis Health Services, operates 14 hospitals. With 18,000 full and part-time employees, the hospital system serves patients in Indiana and parts of Illinois.