LACEY, Wash. (AP) — The standoff between two groups that wanted to bring a mental health hospital to Thurston County was settled after Providence St. Peter Hospital announced a new agreement.

The Olympian reports the plan paves the way for both US HealthVest and Providence St. Peter Hospital to bring mental health hospitals to Lacey.

US HealthVest will begin work on South Sound Behavioral Hospital, a 108-bed facility on Lacey's Woodland Square Loop.

Providence and Fairfax Behavioral Health plan to bring an 85-bed hospital called Olympia Behavioral Health to northeast Lacey.

The Providence and Fairfax project still needs a conditional use permit from the city of Lacey.

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Information from: The Olympian, http://www.theolympian.com