A consortium led by St John of God Health Care has been named as the State government's preferred provider to open a $360 million public hospital in Midland in mid-2015.
The Midland Health Campus will offer 307 beds and expanded services to people in Midland and surrounding areas.
St John of God's consortium includes construction giant Brookfield Multiplex, and architecture firm Hassell.
The consortium was selected ahead of listed provider Ramsay Healthcare, which had signed up construction company John Holland along with architects Peter Hunt and Silver Thomas Hanley for its competing proposal.
The Swan District Hospital will close upon the opening of Midland Health Campus, with permanent staff to have the option to be redeployed to another WA Health facility.
The opening of new WA Health sites and expansion of other sites and services means demand will grow for staff throughout the metropolian area.
"We are committed to extending our distinctive care to a range of public and private health care services for the community served by the Midland Health Campus," Dr Stanford said.
"Along with our hospital design and construction partners, Hassell and Brookfield Multiplex, we look forward to building a world-class health care facility."
"The State will shortly begin contract negotiations with St John of God Health Care with a view to finalising the contractual details as soon as possible, to enable construction to begin in mid-2012," he said.
"The design fits well within the historic Midland redevelopment precinct, is culturally appropriate, and will ensure the community and surrounds have access to high-quality, free public health care closer to home," he said.
"Services will be expanded from those currently available at Swan District Hospital and there will be 50 per cent more beds to better meet the needs of patients now and into the future.
"In addition St John of God Health Care will provide some private patient beds, which will benefit the community."