ISSAQUAH, WA-Swedish Medical Center has won state approval of its application to develop a 175-bed hospital here, where it opened an emergency center in 2005. The state Department Health’s decision comes after two appeals by Swedish to reverse the agency’s original denial of its application.

Swedish’s preferred development parcel, which it has under option, is a 15-acre lot located in the Issaquah Highlands on the east side of Highland Drive that is owned by Port Blakely. The first phase of the hospital is expected to be up and running in 2012. All three phases are expected to cover about 10 acres, with the remainder to be used for other uses, possibly medical office space.

Swedish filed its original application with the state in 2004. Overlake Hospital and Medical Center filed a similar application shortly thereafter. The state denied both applications in 2005, saying there was no need for a hospital based on its count of available beds in the region.

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