WINSTON-SALEM, N.C. -- The state approved on Thursday a plan put forth by Wake Forest University Baptist Medical Center to build a hospital facility in Advance to serve residents of Davie County, possibly ending a months-long battle with Forsyth Medical Center to win the construction contract.

This past February, both applications were denied by the state, principally, the state said, because the two medical centers would be just four miles apart and thus would compete with each other.

In March, Baptist Hospital submitted a revised application, scaling back its proposal to a 50-bed facility without an obstetrics unit, but still in Davie County.

Then in July both hospitals again submitted revised applications. Forsyth Hospital said it still has yet to hear back from the state concerning that application.

The Baptist hospital facility is expected to cost approximately $104 million and will be located on site at I-40 and Route 801 in eastern Davie County.

"We thank our friends in Davie County, western Forsyth and southern Yadkin counties who have been tireless in supporting our applications for a replacement hospital for Davie County Hospital today," said Donny Lambeth, interim president of WFUBMC. "There is no doubt there is a public need for a replacement hospital for Davie County Hospital, and we are delighted that the state has agreed with us."

A Forsyth Hospital spokeswoman said the hospital was planning to push for a two-hospital solution.

"We cannot comment on the state's decision for Davie County because we have not received the specifics," a statement from Forsyth Medical Center spokeswoman Freda Springs said. "However, we are on record as supporting a two-hospital solution that will also allow us to continue to serve the more than 45,000 western Forsyth and Davie County residents who choose and trust Forsyth Medical Center and our doctors for their care. Today's decision is not a two-hospital solution, and we plan to vigorously pursue our application for our medical center in Clemmons."