WakeMed has received state approval for its bid for 41 new hospital beds in Wake County, defeating a bid by newcomer Novant Health to build a full-service hospital in Holly Springs.

WakeMed officials plan to relocate 20 beds from the Raleigh campus to combine with the new beds, creating the county's first dedicated Women and Children's Hospital at its WakeMed North Healthplex.

"North Healthplex has been extremely successful since opening in 2002,demonstrating the need for health care services in this community," said Dr. Bill Atkinson, president and CEO of WakeMed in a written statement. "However, we also understand that there are other communities in our county that are growing and will soon need additional health care resources. We are committed to work with these communities to address their health care needs."

The proposed addition at WakeMed will be 72,300 feet and will cost an estimated $34 million. Construction is expected to begin in February 2010 and be complete by October 2011.

WakeMed also had applied for four operating rooms as part of its Certificate of Need application to the state. They were awarded to Rex Healthcare for a joint project with Raleigh Orthopaedic Clinic to build a freestanding surgery center.  That was a bright spot in an otherwise disappointing day for Rex, which had planned to use the beds for a proposed expansion of its Women's Center.

In a written statement issued late Wednesday, Rex Hospital President David Strong said, "We are disappointed that the state did not decide to provide these beds to Rex and its patients," Strong said. "Every day, enough babies are born at our hospital to fill an elementary school class, and we do not see this growth subsiding."

Rex officials questioned WakeMed's need for the additional beds, stating that 60 beds awarded to WakeMed in 2005 had not yet been put into service. When asked about WakeMed's unused beds, Atkinson replied that they are part of the $100 million construction project underway on the hospital system's main campus.

Holly Springs Mayor Dick Sears said he is disappointed by the decision, especially after the groundswell of support by local residents.

Sears said he spoke with Novant officials several times, but did not say whether or not Novant would appeal the situation.

"We're passionate about the need for a hospital," he said. "Novant is passionate to supply that hospital, they still are, so I guess the answer is stay tuned and we'll see what happens next."