The Tennessee Health Services and Development Agency approved Chattanooga, Tenn.-based Erlanger Health System's plan to relocate and upgrade its aging hospital in Sequatchie Valley, according to the Times Free Press.
The new $32.6 million, 25-bed critical access hospital will be located in Dunlap, Tenn. and it will replace the Erlanger Bledsoe Hospital, which was built in 1975. Hospital officials said the aging facility was outdated and too costly to repair.
In addition to its replacement hospital, Erlanger's approved proposal includes building a $4.3 million emergency room center in Pikeville, Tenn.
Both projects will be financed by the counties where the facilities will be located.
"We've worked with community leaders and really put together a plan to enhance the health services to those communities," Joe Winick, senior vice president of planning and business development at Erlanger. "We are very pleased and I think these facilities will be a tremendous addition to both Dunlap and Pikeville."