The University of Pittsburgh Medical Center has purchased the former Palace Inn in Monroeville and plans to turn it into a health center.

UPMC announced today that it has closed on the sale of the building on Mosside Boulevard, paying $18,975,000 . The building, which sits on 12 acres, will be completely renovated.

The deal ends developer Craig Cozza's bid to obtain one of the state's resort slots licenses for the closed hotel. The state gaming board and others had questioned whether the hotel met the legal requirement of being at last 15 miles from the proposed Majestic Star casino on Pittsburgh's North Shore.

A news release said there is no cost estimate for the new facility, which is expected to be ready in about two years.

UPMC said more than 250 permanent health care jobs will be created at the facility.

The new UPMC adult outpatient facility will include outpatient clinics, diagnostic imaging services such as CT scans, X-ray, ultrasound and mammography, an ambulatory surgery center, an urgent care center and physician offices.

More details in tomorrow's Pittsburgh Post-Gazette.