02/16/2012 05:41 pm ET

Detroit Medical Center Hopes To Build $50 Million Outpatient Facility In Royal Oak

Despite negative reactions from some Royal Oak residents, the Detroit Medical Center and the city's Downtown Development Authority are moving forward with a plan to open an outpatient facility four miles from competitor William Beaumont Hospital.

The DMC, which currently has nine locations throughout the metro Detroit area, has its eye on a vacant lot owned by the DDA at Woodward Avenue and I-696. According to Royal Oak Patch, Children's Hospital of Michigan President Dr. Herman Gray told Royal Oak residents location was a driving force behind plans for the facility. By state law, a hospital at the site would only be allowed to serve Oakland County residents.

"This site will allow us to better serve the families of our patients, who are hesitant, for whatever reason to drive to Detroit," Gray said.

It's not all smooth sailing for the DMC. A Wednesday meeting with the Downtown Development Authority had some Royal Oak residents voicing disapproval of the proposed plan, citing increased traffic and aesthetics as points of concern.

According to Crain's Detroit Business, a spokeswoman for Beaumont said the area doesn't need another outpatient center, and the DMC's move could drive up health care costs.

The $50 million facility would create 155 new hospital jobs and bring the city $1 million annually in tax revenue, Royal Oak Patch reports.

The DMC also broke ground Thursday on an $8 million operating room expansion to Detroit Receiving Hospital. The project is part of a commitment by for-profit Vanguard Health Systems, which took over DMC in January 2011, to spend $850 million on DMC construction and maintenance over five years.