The University of Texas Health Science Center at San Antonio received board approval to jointly develop a children's hospital with Vanguard Health Systems, Nashville, according to a news release.

In addition, the Children's Hospital of Philadelphia will work with Vanguard in managing the $350 million, 250-bed hospital, according to the release. Vanguard will provide the funding for its construction.

As a result of the decision, UT Health Science Center will be ending its academic partnership with Christus Santa Rosa Health System, San Antonio, which had submitted a competing proposal. Christus Santa Rosa released a statement (PDF) from President Patrick Carrier expressing disappointment with the decision. Carrier also wrote that Texas Children’s Hospital and Baylor College of Medicine, both in Houston, have agreed to explore an academic affiliation in pediatrics with Christus Santa Rosa.

“We are extremely excited about this decision,” said Gene Powell, board chairman for the University of Texas System Board of Regents, which made the decision, in the release. “UT Health Science Center—San Antonio can now move forward with its vision of building a new tier-one children’s hospital and pediatric care network.”

The hospital will be built on 15 acres next to UTHSC-San Antonio’s Medical Arts & Research Center, provided by the San Antonio Medical Foundation, according to the release.