The move comes nearly a decade after the health care giant warned that its Alta Bates Summit Medical Center in Berkeley would shutter by 2030 because state-mandated seismic upgrades were infeasible for the 120-year-old complex — stirring fears of a “hospital desert” in the East Bay.

The $1 billion Emeryville campus will include a 200-bed hospital. After it opens around 2032, Alta Bates will close its hospital but offer outpatient surgery, an urgent care clinic and possibly skilled nursing.

A new billion-dollar medical campus in Emeryvillle is set to replace Berkeley's Alta Bates Summit Medical Center.

Sutter Health is investing $1 billion to build a new medical campus in Emeryville, which will include a flagship hospital and expanded outpatient services at two existing buildings, located at 5555 Hollis Street and 5300 Chiron Street.

Sutter Health is investing $1B to expand its services across the East Bay, the San Francisco Chronicle reported.