I don't see how meaningful expansion can take place at the current hospital. There's literally no room except building on top of what's already there. Sure they might be able to re-purpose some areas of the existing hospital into something else that's more priority, but if we want more beds, op rooms, pretty much anything, it needs a new site.
Now, where should a new hospital be built? I've seen this discussed at length on facebook and the consensus that I've felt out is that it should be built NW of the 67th St/30 Ave roundabout on the east side of the city. Lots and lots of room as it's just open fields right now. This may also help get the proposed Northland Drive built out as well.
I also remember reading a letter (link below) about the possibility of building it in the old civic yards downtown. Can't see that happening at all tho given City plans for that area.
As for the current Red Deer Regional Hospital, it would continue to operate as it does today.
https://www.reddeeradvocate.com/opin...-new-location/