What's Happening?
Sanford Health has revealed an extensive 30-year master plan for its central Sioux Falls campus, aiming for significant expansion and vertical growth. The plan, submitted as an updated Planned Unit Development (PUD) to the city, outlines potential development
across 109 acres, stretching from roughly 16th to 26th streets and from West to Prairie avenues. This includes properties currently owned by Sanford, such as rental homes, and others whose owners have agreed to be part of the PUD. The current contiguous property spans 88 acres, within which the master plan details numerous expansion options. Construction has already begun on Medical Building 4, a two-story, 52,000-square-foot facility focusing on dermatology and plastic surgery, scheduled for completion by late 2027. This new building will free up space in the Talley Building for the USD School of Medicine’s M.D. program. According to Kris Denevan, vice president of facilities and support services, a core philosophy is to 'grow where you’re planted,' keeping all services connected to the existing infrastructure. The plan also identifies several existing buildings with the potential to add multiple floors, some already shelled out for future expansion.
Why It's Important?
This ambitious 30-year master plan by Sanford Health signifies a major long-term investment in healthcare infrastructure and services for the Sioux Falls region and beyond. The expansion will enhance Sanford Health's capacity to provide specialized medical care, as evidenced by the new dermatology and plastic surgery facility and the relocation of the USD School of Medicine’s M.D. program. This growth is crucial for meeting the increasing healthcare demands of a growing population and for attracting and retaining medical talent. The plan's emphasis on vertical expansion and new multi-story buildings suggests a strategic approach to maximizing space within the urban core, potentially influencing urban planning and development trends in Sioux Falls. Furthermore, the consideration of live/work buildings and denser housing options around the campus indicates a broader vision for community integration, addressing local housing needs and supporting the workforce. The commitment to preserving green spaces amidst expansion also highlights a balanced approach to development, aiming to maintain quality of life for both patients and staff.
What's Next?
While the overall master plan is a 30-year vision, immediate next steps include the continued construction of Medical Building 4, expected to be completed by late 2027. Sanford Health will continue to evaluate areas of significant growth and space constraints, with current conversations focusing on women and children’s service lines, particularly building upon the success of the pediatric ER. The health system is also exploring potential collaborations with local developers for multifamily housing projects north of 26th Street and on the east end of the campus, addressing the need for denser housing options. Future developments will likely involve adding floors to existing structures and constructing new buildings and parking ramps as outlined in the PUD. Sanford Health will also continue to prioritize accessible parking, potentially expanding its power plant capacity to support the growing campus. The long-term realization of the plan will involve ongoing coordination with the city of Sioux Falls to ensure zoning criteria and growth align with community needs.
Beyond the Headlines
The Sanford Health master plan extends beyond mere physical expansion; it represents a significant commitment to the economic and social fabric of Sioux Falls. By planning for decades of growth, Sanford Health is positioning itself as a stable and expanding employer, which can attract new residents and businesses to the area. The integration of potential live/work spaces and housing options around the campus could foster a more vibrant, walkable community, reducing commute times for employees and enhancing urban density. This holistic approach to development, which includes preserving green spaces and considering community housing needs, could serve as a model for other large institutions in urban settings. The plan also underscores the evolving nature of healthcare delivery, with a focus on specialized clinics and integrated services, reflecting broader trends in the U.S. healthcare industry towards comprehensive, campus-based care. The long-term vision suggests a proactive strategy to adapt to future healthcare demands and technological advancements, ensuring the region remains a hub for medical innovation and patient care.











