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Gus Iversen, Editor in Chief | November 26, 2025
Sutter Health has announced plans to build a new eight-story medical center in Santa Clara, California marking the largest investment in the organization's history.
The $2.8 billion development will include the new flagship hospital and two ambulatory campuses totaling over 1 million square feet.
The Sacramento-based health system will construct the hospital on a 13.6-acre site near Levi’s Stadium, replacing an existing office park at 2831 and 2841 Mission College Boulevard. Once complete, the facility will offer 272 licensed beds, with the ability to expand by 30 beds as needed. Services will include a full-service emergency department, operating rooms, ICUs, maternity care with a Level III NICU, and a rooftop helipad for emergency transport.
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The Santa Clara project is part of Sutter’s broader strategy to increase access to integrated care in the fast-growing Silicon Valley region. The system opened the Sutter East Santa Clara Care Center in October, offering urgent care, internal medicine, cardiology, and imaging. A second ambulatory site is also planned roughly a mile from the hospital site.
The planned medical center is expected to be operational by late 2031 and is intended to address care gaps in an area currently underserved by hospital services. According to the organization, many local residents currently travel 20 minutes or more to access inpatient care.
Sutter estimates the development will support over 5,000 jobs when fully staffed, including more than 3,000 direct employees and clinicians. An economic impact analysis by EY projected $3.3 billion in development-related economic activity.
The organization also plans to expand its graduate medical education programs in the region, aiming to train more than 1,000 residents and fellows annually by 2030. New training programs in Santa Clara are expected to launch in 2027 in internal medicine, OB/GYN, surgery, and radiology.
Recruitment efforts are ongoing through Sutter’s partnership with Palo Alto Foundation Medical Group, which has added 750 physicians and clinicians since 2022.
