Sutter Health to invest $800M+ in 2 ‘flagship’ campuses

Sutter Health is investing more than $800 million to develop approximately 1 million square feet across two new healthcare campuses in Santa Clara, Calif. 

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The Sacramento, Calif.-based health system, in partnership with Palo Alto Foundation Medical Group and The Sobrato Organization, will renovate two large vacant office campuses to develop Sutter West Santa Clara Campus and Sutter East Santa Clara Campus, according to a Dec. 17 news release.

The campus sites are less than a mile apart. 

In November, Sutter and The Sobrato Organization finalized a 75-year ground lease with the West Valley-Mission Community College District for a five-building site, the future west campus, according to the release. Sutter also signed a second lease in 2023 for three buildings, which will form the east campus.

The approximately 700,000-square-foot west campus will focus on specialty services and feature destination centers of excellence in orthopedics and sports medicine, cancer, women’s health, and heart and vascular care, the release said.

The west campus will also provide comprehensive diagnostic imaging, lab and testing services and other specialty clinics. 

Services will open in phases, beginning as early as 2027.

The approximately 300,000-square-foot east campus will offer comprehensive primary care, as well as specialty care services, an ambulatory surgery center and urgent care, the release said. 

This project is expected to l be completed in phases. 

The first building on the east campus should open in the latter half of 2025, and both campuses will house several hundred physicians and advanced practice clinicians.

“We’re working closely with our physician partners at PAFMG and development partner The Sobrato Organization to plan and open these flagship healthcare destinations across two connected campuses,” Sutter President and CEO Warner Thomas said in the release. 

“Our goal is to address the healthcare needs of the region and tackle the challenges patients face when trying to get appointments and referrals by advancing a seamless and integrated care experience, attracting more primary and specialty care physicians to the area. We are also investing in programs and educational partnerships with West Valley-Mission Community College District to build the healthcare workforce of the future.”

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