The temporary Covid-19 medical facility will be created in the Scottish Events Campus (SEC) in Glasgow.
First minister Nicola Sturgeon said that the NHS Scotland-run medical facility could expand to hold more than 1000 patients if later required.
Jill Young, former chief executive of the Golden Jubilee Hospital at Clydebank, has been appointed chief executive of the temporary hospital.
Sturgeon said: 鈥淥ur NHS is on an emergency footing and all health boards have been undertaking extensive work across Scotland to maximise the capacity available to manage expected rise in demand due to Covid-19.
鈥淭here are currently approximately 13,000 beds in NHS hospitals across Scotland and health boards are working to ensure we have capacity of at least 3,000 available for Covid-19 patients. They are also quadrupling intensive care unit capacity to 700. We expect this to provide sufficient treatment capacity to meet the rise in demand.
As a safeguard and to provide extra flexibility, we have been working closely with the military to plan and build this facility which initially be for use by those who have been through hospital treatment and are recovering from their symptoms.
I hope this facility will not be needed as, alongside the public鈥檚 contributed efforts to stay at home and the steps we are already taking to increase the number of NHS beds, we should have the beds we need.
鈥淚 want to repeat my thanks to all of our NHS staff working to protect and treat those of us who need it and to everyone staying at home and doing their bit to face these unprecedented challenges.鈥
SEC chief executive Peter Duthie said: 鈥淎s we navigate the most significant challenge of our generation, we are proud to be in a position to help our NHS with an alternative hospital provision.
鈥淥ur teams will support the NHS in the build, security and safe operation of the resource, and continue to express our sincere gratitude for all that they are doing to fight Covid-19.鈥
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