INDIANAPOLIS (AP) — Ground will be broken on a new state mental health hospital in the coming months.

State officials announced Wednesday that construction on the new facility will begin in April. Once completed in 2018, the facility on the east side of Indianapolis will have 159 beds and treat up to 1,500 patients per year.

The new hospital, which will be called the Indiana Neuro-Diagnostic Institute, will replace the existing Larue D. Carter Memorial Hospital and will be operated by Community Health Network. It is projected to cost $118.7 million and will be paid for with money borrowed by the state.

Gov. Mike Pence, lawmakers and state health officials attended a ceremony Wednesday morning at the planned construction site, which is on the campus of Community East Hospital.