Moose Jaw will be getting a new hospital with construction to start in 2013, the provincial government says.
The announcement in Moose Jaw Tuesday settles a longstanding question about the future of aging Moose Jaw Union Hospital.
Renovating the existing hospital at a cost of between $20 million to $50 million was one of the options that had been looked at over the past year.
Instead, the province is going ahead with a new facility. The proposed cost is expected to be about $100 million.
The announcement about a new hospital, which wasn't included the spring budget, comes a little more than two months before a provincial election.
Last month, the NDP expressed concerns the government might be dragging its feet on an announcement for political reasons.
This year, government says it will spend an extra $5 million to complete plans on the hospital.
The new hospital is expected to open in 2015.
Moose Jaw Union Hospital was built in 1948, with major additions in 1954 and 1973.