Spaulding president and CEO Judith Waterston says Spaulding's current building, which was established as a nursing home in the 1960s, "is nearing the end of its useful life." A new building is needed, she says, to keep up with advances in medical technology and allow staff to provide better patient care. "For Spaulding to continue to provide world-class care, it needs a new facility and a new home."

The hospital has hired the international architectural firm of Perkins & Will to begin the preliminary design process and expects to begin an institutional master plan and project review by early next year. Hospital officials said the downsizing in the number of beds is a result of a decline in the length of hospital says along with the growing demand for privacy by patients along with the opportunity to reduce infection risk. In a statement, Mayor Thomas Menino says Spaulding's decision to remain in the region caps the city's plans to revitalize Charlestown Navy Yard, once a sprawling military port that has been turned into upscale marinas and mixed uses.

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