Kaiser Permanente says it's still on track to replace its 50-year-old medical center along San Jose's Santa Teresa Boulevard and Cottle Road with a new building.
The new hospital building is set to start construction next year in a nearby lot.
It will come with 303 beds, nearly a quarter more than the current building, along with a job boost to what is the city's fourth largest employer.
"It's going to allow them to hire a few hundred more people," said San Jose Mayor Matt Mahan. "San Jose is always going to say yes to investment. But we know with our aging population, it's especially important that we're continuing to expand the capacity of our healthcare system."
Get a weekly recap of the latest San Francisco Bay Area housing news. Sign up for NBC Bay Area’s Housing Deconstructed newsletter.
Construction is expected to last through early 2028. Santa Clara County health officials said they appreciate the extra beds and staff Kaiser's expansion will bring.
In a statement, Kaiser said it's prepared to make substantial investments in upgrading facilities to support "South Bay members and the local community."
Kaiser added the new hospital will be six stories tall and take up 685,000 square feet of space, that's more than twice the size of the current hospital.
