State officials approved Memorial Health Care System's certificate-of-need application to expand the hospital's Hixson location, according to a news release.
The plan includes a replacement of the intensive care unit and renovations to the emergency department, endoscopy unit and radiology space, the release stated.
Three elevators will be installed, along with a partial renovation of one of the hospital's nursing units, officials said.
Expected to be completed by 2014, the $17.6 million project will increase the number of intensive care beds from eight to 10 while medical-surgical beds will decrease from 61 to 59.
Hospital executives emphasized that the project involves no discontinuation of health care services.
The emergency department treatment rooms will increase from 13 to 17 beds, and the endoscopy unit will gain a lab, bringing the Hixson location's total to three.
The state must approve any hospital renovation valued at more than $5 million. The Tennessee Health Services and Development Agency approved Memorial's application July 27.