Powerhouse and award-winning Houston cancer center MD Anderson will partner with the University of Texas at Austin to expand Dell Medical School and build two new hospitals.

This new medical center, called The University of Texas at Austin Medical Center, will include two facilities: a comprehensive cancer center operated by MD Anderson and a multi-specialty hospital operated by the University of Texas.

The project will be made possible by the demolition of the 500,000-square-foot Frank Erwin Center, which officially closed in May 2022. Its replacement, the Moody Center, officially opened to the public in April 2022, and in April 2023 celebrated its jam-packed first year.

In May, the UT System's Board of Regents approved an item paving the way for Dell Medical School's expansion. The full demolition is estimated to cost $25 million, and the university hopes to finish the demolition project by October 2024.

University Chancellor James Milliken and Board of Regents Chair Kevin Eltife announced the project on Monday along with Gov. Greg Abbott.

MD Anderson is a branch of the UT system and was recently named No. 1 in the country for cancer care by U.S. News & World Report. It is the largest cancer care center in the U.S. and one of the original three comprehensive cancer centers in the country.

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An earlier version of this story reported one new facility instead of two. It has been updated to reflect the correct information. Read the full story and watch the video at KVUE.com.