San Antonio-based University Health is investing $1.7 billion in a five-year expansion, including two new community hospitals and two multispecialty clinics.
Here are five things to know:
1. The cost of University Health Palo Alto Hospital in San Antonio and University Health Retama Hospital in Selma, Texas, is $1.5 billion. The hospitals are slated to open in 2027, according to a Jan. 9 health system news release. Construction on the two hospitals began in January and February 2024, respectively.
2. The remaining $200 million funded two new multispecialty clinics in San Antonio — University Health Vida and University Health Wheatley — and furniture and equipment for the hospitals, a health system spokesperson confirmed to Becker’s.
3. The $1.7 billion expansion will generate $5.7 billion in total construction activity and more than 26,000 jobs, according to an economic impact study by the Perryman Group.
4. The expansion is expected to deliver an overall boost of $2.8 billion to the local economy.
5. University Health is also upgrading a shuttered hospital and medical office campus purchased in late 2025 to establish University Health Babcock Specialty Hospital, a $20 million investment.
“We have been thoughtful and strategic stewards of both our public funding, which is now less than 15% of our revenue budget — and our mission to improve the good health of the entire community,” University Health President and CEO Ed Banos said in the release. “As a result, we have been able to make these investments in our services and facilities that have significantly expanded health care access and provide a tangible multiplier effect for the economic health of the community.”
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