Washington, D.C., has reached a $375 million deal with King of Prussia, Pa.-based Universal Health Services to replace a troubled hospital in the region, according to The Washington Post.
Under the deal, UHS will manage the new hospital in Ward 8 in the D.C. area. It will be part of a larger system that links to George Washington University Hospital. UHS is the majority owner of George Washington University Hospital.
The deal is part of a broader aim to ensure hospital care stays in an underserved community.
UHS plans to build a new 136-bed inpatient hospital, an outpatient ambulatory center and two new urgent care centers. UHS will invest about $75 million into the projects, and the city will offer $375 million, according to the report.
The new facility will serve as a replacement to the financially troubled Washington, D.C.-based United Medical Center, which is owned by the city. Once the new hospital is built by UHS, United Medical Center will begin a phased shut down process, according to the Washington Business Journal.
The deal still must be approved by the D.C. Council.