Sutter Health Announces Multibillion-Dollar Flagship Medical Center in Santa Clara

Sutter Health announced plans on Monday for a new flagship medical center in Santa Clara, part of a multibillion-dollar investment to expand health care access in Silicon Valley.

The centerpiece of the $2.8 billion dual-campus plan is an eight-story medical center to be built on a 13.63-acre site near Levi’s Stadium. Sutter Health President and CEO Warner Thomas called the facility the “digital hospital of the future.”

“Today marks a turning point … for the future of health care here in Santa Clara and in Silicon Valley,” Thomas said, describing the new 272-bed hospital, which will replace an existing office park at 2831 and 2841 Mission College Blvd. “This will be the largest investment in the history of Sutter Health.”

The new facility, slated to open in late 2031, will feature all private patient rooms, a full-service emergency department, intensive care units, advanced operating rooms and a Level III neonatal intensive care unit. Officials emphasized that the investment is designed to fill a critical gap in a region underserved by health systems.

Speaking at Monday’s event, Santa Clara County Supervisor Susan Ellenberg described the county’s emergency response system as being “under extraordinary strain,” noting that the county has the second-lowest ratio of ER treatment stations per resident in California.

“This level of demand clearly cannot be sustained by county facilities alone,” Ellenberg said. “The addition of a Sutter Health Medical Center … will help reduce the enormous pressure on county-operated facilities. It will also improve ambulance response times, access to care and provide more options for people who depend on us.”

Thomas reinforced the point, stating that the county’s hospital infrastructure has not “kept pace” with the region’s growth, lagging behind state and national averages for beds per capita.

Santa Clara Mayor Lisa Gillmor called Sutter’s expansion “a very exciting day for Santa Clara” and a key step in meeting the needs of a growing population.

“The addition of the Sutter Health Hospital expands access, it increases capacity and gives our residents more choice, ensuring that more families can receive excellent care right here in Santa Clara, close to home,” Gillmor said.

The project, which includes the recently opened Sutter East Santa Clara Care Center, will create hubs for specialty care in cancer, women’s health and orthopedics. It will be integrated with the Palo Alto Foundation Medical Group to help with recruitment.

“In the 29 years I’ve worked here [in Santa Clara County], we haven’t had good enough access for our patients,” said Dr. Kurt VandeVort, CEO of PAFMG. “This is really a landmark investment.”

The initiative also includes a significant focus on workforce development. Thomas announced a new, multimillion-dollar partnership with the Santa Clara Unified School District to create “Health Career Pathways” to help prepare students for careers in health care.

SCUSD Superintendent Damon Wright said the collaboration would provide students with “hands-on, real-world experiences” and training for certification-eligible roles.

Sutter also plans to expand its Graduate Medical Education programs, aiming to train 1,000 residents and fellows annually by 2030, and is partnering with the West Valley-Mission Community College District on nursing and emergency services programs.

According to an independent analysis by EY, the new facilities are projected to support more than 5,000 jobs by 2031.

“This new medical center and the broader Santa Clara project represent a promise to this community to make accessing sought-after health care so much easier,” said Dr. Rebecca Fazilat, Board Chair of PAFMG.