Built at a cost of $87,700,000 to replace the aging Valley Hospital in downtown Palmer, construction on the hospital began in spring 2004. The hospital opened on January 27, 2006. The three-story, 197,690 square feet (18,366 m2) facility contains fifty medical/surgical beds and eight each of intensive care, progressive care, and obstetric beds, all in private rooms. There are four operating rooms, plus a fifth designated for Caesarean sections. The unfinished third floor provides room for a sixth operating room and 52 more general beds.