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

Sanford Health has announced a significant advancement in healthcare for the region, following a generous donation of $300 million from philanthropist Denny Sanford. This funding will establish the new Sanford Black Hills Medical Center in Rapid City, South Dakota, with construction slated to commence in 2027 and a projected completion date of 2030.

The new medical campus will be situated at 7220 Mt Rushmore Road, adjacent to the Black Hills Orthopedic & Spine Center, which was acquired by Sanford Health in 2024. The expansive facility will span 480,000 square feet and is designed to host 168 inpatient beds. It will also include a comprehensive women’s health center featuring a labor and delivery unit, as well as dedicated inpatient and outpatient services for children. Plans are in place to potentially increase this capacity in the future.

The center aims to enhance specialty care in the Black Hills region. Planned services include 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 support, 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.”

Enhancing Healthcare and Workforce Development

The introduction of the Sanford Black Hills Medical Center is expected to attract more healthcare professionals to the area, thus creating jobs and expanding options for patients. Dr. Lew Papendick, board chair of the Sanford Black Hills Surgical Hospital, highlighted the campus’s potential to draw exceptional physicians across various specialties, which will bring advanced care closer to home for local residents.

This announcement marks a continuation of strategic expansions by Sanford Health into the West River market. Over the past year, the organization has acquired several healthcare facilities, including the Black Hills Surgical Hospital, Black Hills Plastic Surgery, and Creekside Medical Clinic. While Monument Health has traditionally been the primary healthcare provider in Rapid City, both organizations have acknowledged the shifting landscape and are committed to enhancing patient care options.

In conjunction with the medical center’s development, Sanford Health plans to invest $10 million over the next decade to strengthen the local workforce. Beginning in 2026, this investment will focus on partnerships with K–12 schools, technical colleges, and universities throughout the Black Hills. This includes a commitment of $3 million to support the Build Dakota initiative for technical education, along with $2.5 million to expand the Aspire program, which aims to provide hands-on learning opportunities 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, stating, “Building a robust and sustainable health care workforce begins with education. 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, solidifying his legacy as a key figure in the enhancement of healthcare services in the region. The new medical center represents not only a significant investment in infrastructure but also a commitment to improving health outcomes for the community.