Allina Health, a US-based health system, will spend $22m to expand Mercy Hospital in Coon Rapids, Minnesota.
The expansion will include a new four-storey 120,000ft² building, which features the Virginia Piper Cancer Institute, as well as speciality care, outpatient surgery services and obstetrics/women's care.
The facility, which will be built across the street from Mercy Hospital, will be connected by a skyway.
The building will also feature a patient drop-off entrance, hands-free entrances, extra-wide corridors, elevators, suite entrances and an acoustically sensitive design to maximise privacy.
Mercy Hospital interim president Jeff Peterson said construction is set to break ground in October 2012 and the hospital will open its doors to patients in November 2013.
"This project will enable the hospital to enhance patient care and expand the services offered in our community," Peterson added.
Allina Health operates 90-plus clinics, 11 hospitals, 15 pharmacies, speciality care centres and speciality medical services that provide hospice care, oxygen and home medical equipment, and emergency medical transportation services.