King's Daughters' Medical Center in Ashland, Kentucky, has lost its attempt to grow by another 65 beds.
This has become part of an ongoing competitive battle between KDMC and nearby Bellefonte Hospital.
King's Daughters Medical Center filed a special request earlier this month to add 65 acute care beds.
On Monday, the state denied the request on three different criteria.
One of them being a lack of need for the extra beds in the eastern Kentucky area.
Our Lady of Bellefonte Hospital in Russell, Kentucky, fought against the request, saying that it can already provide the needed bedspace.