A state agency says Shands Jacksonville Medical Center will not be able to build a new inpatient hospital on the Northside.
But the hospital still plans to build a medical office complex there.
In 2007, Shands asked the state for permission to build an inpatient hospital and medical office complex near the intersection of Interstate 95 and Duval Road.
Memorial Hospital appealed, and in December, a judge agreed with Memorial and said the new hospital shouldn't be built.
Two weeks ago, the state Agency for Health Care Administration sided with the judge, blocking the new hospital.
Shands is still able to build the new, 200,000-square-foot office complex, which will include urgent care, diagnostic imaging, outpatient surgery suites, and doctors' offices.
It expects to begin construction this summer.