The University of Mississippi and Baptist Memorial Hospital-North Mississippi have reached a sale agreement for the existing hospital property located at 2301 South Lamar Boulevard. Officials say the acquisition will allow the university to address current space allocation challenges as well as future growth needs.

"The university is always examining how best to nurture and manage growth associated with strong demand for our academic programs," Chancellor Jeffrey Vitter said. "We will continue to focus the heart of campus on our core, academic functions. "

Baptist North Mississippi is an acute care facility serving the northern third of Mississippi. One of the fastest growing hospitals in the region, the new replacement hospital has been in planning since 2009. The new five-story hospital will have more comprehensive medical and surgical services and offer more convenience to patients and visitors.

The agreement includes a lease-back to allow Baptist North Mississippi sufficient time to complete the move into its new facility, which is currently under construction. Baptist North Mississippi's new facility is expected to open in November 2017.