The groundbreaking is scheduled for Wednesday at the site -- which is the former Ochocco Lumber site.
The hospital's CEO, Jeanie Gentry says it will be more patient-friendly.
"Actually it isn't larger, it's smaller than the current square footage. That's because it's more efficient and make it more patient centered. When I go to the doctors office I want it in a short amount of space and to not have to repeat my info 15 times."
The new healthcare campus will include primary and specialty care along with an E-R department and surgery suites.
The new hospital should be completed by the fall of 2015.