Tuesday, construction crews broke ground on the Seton Medical Center at UT, a $295 million teaching hospital.

Located on the site of the Dell Medical School on Red River and 15th streets, the 211-bed teaching hospital is scheduled to open in 2017. The Dell Medical School is already under construction and is set to open in 2016.

Both buildings will be part of a new medical campus that will include state-of-the-art facilities as part of an initiative to improve community health infrastructure.

“This project will have a positive impact on the delivery of health care in Central Texas for generations to come,” said Anthony Tersigni, Ascension president and CEO, in a statement. 

Ascension is the nonprofit health system that operates the Seton Healthcare Family, a health care system which manages several hospitals in Central Texas.

Despite being built on University land, the new teaching hospital will continue to be managed by Seton. Central Health, Travis County’s health care district, intends to sublease the land from the University to Seton. 

According to Seton, the new hospital will replace University Medical Center Brackenridge, which was built in the 1970s and is not designed to meet the operational needs of a 21st century teaching hospital. Seton expects the combination of a new teaching hospital and medical school on the University campus to create 15,000 new jobs, not including construction positions.