Yale New Haven Hospital is planning an $838 million, 505,000-square-foot, 204-bed expansion of its St. Raphael campus in New Haven. Image courtesy of Yale New Haven Hospital.

Yale New Haven Hospital is expanding one of its two New Haven locations in a dramatic way.

Hospital officials joined community members and elected officials on Monday to announce a $838 million expansion of its St. Raphael campus, which sits in the city’s western Dwight neighborhood about a mile from its main campus.

The project would include two new patient facilities and focus on innovation in the neurosciences. Hospital officials said it will be the largest project of its kind in state history and will provide enhanced access to state-of-the-art care for patients.

“We firmly believe that this new facility will change the landscape of healthcare and draw patients from throughout the region and nation,” Yale New Haven Health CEO Marna Borgstrom said in a statement. “While this represents a landmark investment in our patients, it was also very important to us that we move this project forward in full partnership with the city of New Haven, the state and the local community. We are proud to work together to advance the promise of exceptional care for our patients.”

The 505,000-square-foot project, featuring 204 inpatient beds, will fulfill a vision of providing a “unique setting” for patients seeking innovative care from movement disorders like ALS to neuro-regeneration, the hospital said. The project will also allow Yale New Haven to move departments currently in its existing East Pavilion, which was built in 1953 and includes more than 300 patient beds.

The project will be built within the existing footprint of the hospital campus, bordered by Sherman Avenue and George Street. It will shift the main entrance of the hospital from Chapel Street to George Street. An existing parking garage on Orchard Street will be extended to George Street to accommodate patients and a new 200-space underground garage will support the facility. Between the St. Raphael Campus and its main campus next to downtown New Haven, the hospital has 1,541 beds.

Yale New Haven has agreed to work with city officials to drive better quality health outcomes for city employees at lower costs. To bridge to those savings, the hospital has agreed to a one-time voluntary bridge payment of $3 million in addition to its ongoing support. Yale New Haven has also agreed to pre-pay $8.9 million in building fees associated with the project.

The announcement comes as the boards of Yale New Haven Hospital and Yale New Haven Health provided their preliminary approvals earlier this month.

“We reviewed a number of options when considering this project,” Mary Farrell, chair of Yale New Haven Hospital, said in a statement. “This represents an important investment on the St. Raphael Campus. Consistent with our promise in 2012, this will allow us to further our goal to rebalance the two campuses, providing synergy and exceptional care at both locations.”