The province has announced construction has started at the new Mills Memorial Hospital in Terrace.
According to the province, the 78 bed hospital will be more than twice the size of the current facility and will also feature private rooms.
The hospital will also increase its emergency department to 20 treatment spaces from 10.
It will also have two trauma bays, six stretcher bays, four operating rooms and the latest diagnostic imaging equipment.
Additionally, mental health services will also be brought up to modern standards with a new and larger Seven Sisters regional mental health facility being built on hospital grounds.
In the new building there will be 25 beds, which is an increase from 20.
The province added the hospital will also see an improvement in mental health services with 20 of the 78 beds dedicated to adult inpatient psychiatric care.
A news release also said Northern Health will be working collaboratively with local and regional First Nations to ensure the hospital is culturally safe and welcoming.
This new hospital will serve as a level three trauma and inpatient surgery centre.
According to the province, the current facility is a level-four trauma centre which means many patients are stabilized on site and then transported to another facility.
The new hospital will be built at the north end of the current hospital grounds and is expected to be complete by 2025 with demolition of the current facility to follow which will make room for more parking.
The project is expected to cost $622.6 million which is shared between the provincial government through Northern Health and the North West Regional Hospital District.