Sutter Health has announced plans to build a new medical center in Santa Clara, marking the largest investment in the organization’s history. The facility will be located on a 13.63-acre site near Levi’s Stadium and is part of Sutter’s broader strategy to expand integrated healthcare services in Silicon Valley.
The project includes two campuses totaling one million square feet and aims to meet the growing healthcare needs of the region. The new eight-story medical center at 2831 and 2841 Mission College Blvd. will replace an existing office park. When completed, it will feature 272 licensed beds with the capacity to add 30 more, private patient rooms, a full-service emergency department, intensive care units, labor and delivery suites with a Level III neonatal intensive care unit, advanced operating rooms, environmentally responsible design elements, and a rooftop helipad.
Warner Thomas, president and CEO of Sutter Health, stated: “We are honored to work alongside our longtime partners at Palo Alto Foundation Medical Group, whose physicians have delivered exceptional care in the Silicon Valley for decades. This new medical center builds on PAFMG’s distinguished legacy and connects their award-winning care to a full continuum of services within a comprehensive, integrated model of care — ensuring we can meet every patient need. As part of our vision to create a dual-campus medical destination in Santa Clara, this investment expands access, advances clinical excellence and strengthens the coordinated experience for patients and families across the region.”
Sutter’s expansion plan includes digital technologies such as artificial intelligence (AI), telemedicine, and remote patient monitoring to enhance both access and delivery of care. Ken McNeely, chair of the Sutter Health board of directors said: “By connecting physical infrastructure with digital technologies like AI, telemedicine and remote patient monitoring, we are not only improving access, but we are also redefining how care is delivered. This investment in a flagship medical center expands care capacity, drives economic growth, attracts new medical talent and builds the healthcare workforce of the future. All of this reflects our long-term commitment to creating a healthier future in Silicon Valley and beyond.”
The Sutter East Santa Clara Care Center at 2441 Mission College Blvd., which opened on October 20th as part of this initiative, offers urgent care for adults and children as well as specialties such as internal medicine, family medicine, pediatrics, cardiology along with lab and imaging services.
Dr. Kurt VandeVort, CEO of Palo Alto Foundation Medical Group commented: “As Silicon Valley’s population continues to grow and age, the need for timely access to nationally recognized, high-quality, coordinated care has never been greater. PAFMG has been deeply rooted in this community for nearly a century… Our integrated network of exceptional physicians and advanced practice clinicians is enhanced by digital tools designed to meet this growing need. We are building a healthcare destination that streamlines the patient journey…”
Santa Clara Mayor Lisa Gillmor added: “Santa Clara is growing, and with that growth comes a greater need for comprehensive healthcare services… This new medical center reflects our shared commitment to expanding access and meeting the needs of our community.”
Sutter projects that once fully operational by late 2031 its new facilities will support over 5,000 jobs including more than 3,000 direct Sutter employee positions according to an independent analysis by EY.
Additionally during construction more than 2,500 jobs are expected across related industries with an anticipated $3.3 billion total economic impact during development.
Graduate Medical Education programs will also expand; by 2030 Sutter expects to train over 1,000 residents annually making it Northern California’s largest community-based training institution.
Assemblymember Patrick Ahrens remarked: “Sutter Health’s new medical center in Santa Clara represents a major investment in the future of healthcare for Silicon Valley… This facility is more than just a building; it’s a promise to deliver accessible high-caliber care…”
Beyond clinical expansion Sutter supports local health centers like Bay Area Community Health in San Jose as well as initiatives promoting wellness such as sponsorships encouraging active lifestyles through sports teams like Bay FC.
