Sacred Heart Parish School in Sacramento opposed the hospital expansion next door for two reasons: the disruption during the long construction period, and the school needed more money to reorient their buildings than Mercy was offering to pay. Negotiations broke off a year ago. But a settlement now specifies that Mercy will pay $15 million so a new school can be built across 39^th street, and the hospital will buy the school’s current site. It removes a major obstacle to the $150 million expansion, which will include a new heart center and updating other facilities.