Community Medical Centers announced Tuesday that an existing office building and walking path will make way for the new tower.
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With 144 private beds, it should be ready for patients in 2022.
"We're seeing a lot of new people coming into this area because of the quality of life here," said Community Medical Centers CEO Tim Joslin.
The emergency room will be expanded with six more operating rooms and 24 ICU beds. A new parking structure is also needed.
"The hospital when its done is gonna have 352 rooms and all private rooms so it's very exciting for the area," said Joslin.
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The new tower will create 420 new jobs.
A fundraising push is underway to help raise money to pay for the project that's expected to cost $390 million.
"Before, during and after. It's a combination of using the income that we generate from operations as well as philanthropy," said Joslin.