San Francisco.-based Dignity Health plans to close Methodist Hospital of Sacramento (Calif.) when construction ends on its $320 million facility in Elk Grove, Calif., according to the Sacramento Business Journal.
Methodist Hospital, which has been in service since 1973, will close in part because parts of the facility are not expected to meet California's earthquake-resistance requirements by a 2030 deadline, according to the report.
Instead of upgrading the hospital to meet the state's standard, which would have cost more than $150 million, the system opted to build a new campus in Elk Grove.
When construction is complete on the new 200,000-square-foot, 100-bed hospital in Elk Grove, Methodist will close acute care services and transfer its teaching services to the new campus. The new facility will take about seven years to construct, according to the report.
The skilled nursing facility and family medicine clinic on the Sacramento campus will remain open.
Dignity Health made a similar decision to build a new hospital, instead of upgrading the Woodland (Calif.) Memorial Hospital, earlier this year.