A new billion-dollar medical campus in Emeryvillle is set to replace Berkeley's Alta Bates Summit Medical Center.

The $1 billion Emeryville campus will include a 200-bed hospital. After it opens around 2032, Alta Bates will close its hospital but offer outpatient surgery, an urgent care clinic and possibly skilled nursing.

Sutter Health announced a $1 billion plan Wednesday to build a flagship campus and medical center near I-80 in Emeryville that will provide an initial 200 beds and almost as many clinicians by 2033. The move comes nearly a decade after the health care giant warned that its Alta Bates Summit Medical Center in Berkeley would shutter by 2030 because state-mandated seismic upgrades were infeasible for the 120-year-old complex — stirring fears of a “hospital desert” in the East Bay.