Sanford Health Secures $300 Million for New Medical Center in Rapid City

Sanford Health has announced a substantial donation of $300 million from philanthropist Denny Sanford to establish a new medical campus in Rapid City, South Dakota. The Sanford Black Hills Medical Center will be located at 7220 Mt Rushmore Road, adjacent to the Black Hills Orthopedic & Spine Center, which was acquired by Sanford Health in 2024. Construction is slated to begin in 2027, with a target completion date set for 2030.

The proposed facility will span 480,000 square feet and feature 168 inpatient beds. It will include a comprehensive women’s health center with a labor and delivery unit, as well as dedicated inpatient and outpatient services for children. Plans are already in place to potentially expand the hospital’s capacity in the future. Sanford Health aims to enhance specialty care in the region, with additional services such as a full emergency department, an intensive care unit, surgical suites, a dialysis center, and an oncology infusion center.

Bill Gassen, President and CEO of Sanford Health, expressed gratitude for Denny Sanford’s generosity, stating, “Mr. Sanford’s extraordinary generosity and vision inspire what we do every day at Sanford Health. We are honored to carry forward his remarkable legacy in the Black Hills.”

Expansion of Healthcare Services in the Region

Dr. Lew Papendick, chair of the board at the Sanford Black Hills Surgical Hospital, highlighted the impact of the new campus on local healthcare. “The new Sanford Black Hills Medical Center campus will attract even more exceptional physicians in a wide variety of specialties to the region and bring advanced care closer to home for our community,” he said.

This announcement represents a significant strategic move by Sanford Health into the West River market. Over the past year, the health system has expanded its operations through several acquisitions, including the Black Hills Orthopedic and Spine Center, Black Hills Surgical Hospital, Black Hills Plastic Surgery, and Creekside Medical Clinic. While Monument Health has long been the primary healthcare provider in Rapid City, both organizations have acknowledged the evolving competitive landscape and are committed to offering patients a broader range of options.

Investment in Local Workforce Development

In addition to the new medical center, Sanford Health has plans to invest $10 million in the local workforce beginning in 2026. This investment will extend over the next decade and will involve partnerships with K–12 schools, technical colleges, and universities throughout the Black Hills. The funding includes $3 million allocated to support technical education through the Build Dakota program and $2.5 million to expand the Aspire program, which provides hands-on learning experiences for K-12 students.

Kyle Wiese, president and CEO of the Sanford Black Hills region, emphasized the importance of education in building a sustainable healthcare workforce. “Building a robust and sustainable health care workforce begins with education,” he said. “These investments empower local students to pursue careers in health care, ensuring the next generation of caregivers is rooted in the communities we serve.”

Since 2004, Denny Sanford has contributed nearly $2 billion to the Sanford Health system, underscoring his commitment to enhancing healthcare access and quality in the region.