On Tuesday, the University of Alabama Board of Trustees were presented with a proposal that, if approved, would allow the University to oversee construction of a new Bryce Hospital, The Tuscaloosa News reported Tuesday.

The trustees’ executive committee conversed via conference call on the same day regarding the approval of a memorandum of understanding with the Alabama Department of Mental Health, according to The Tuscaloosa News.

In May, mental health officials approved the University’s request to purchase the current Bryce Hospital and its 168-acre campus for nearly $78 million, The Tuscaloosa News wrote. Twenty-two million dollars, provided by a state bond, will go toward the cost of the land on which Bryce is located.

The money the department receives will go toward a new hospital, and it will also expand community-based care statewide.

The University will oversee the construction, which will be managed as a campus building, and the projected cost of constructing the new hospital is about $65 million, University spokeswoman Cathy Andreen said.

Mental health administrators will supervise possible budget overages or cost savings, and as a management fee, the mental health department will pay UA 1.5 percent of the project’s cost as a management fee, according to The Tuscaloosa News.