Sanford Health is committed to expanding medical access to the Black Hills region of western South Dakota.
During a community announcement in Rapid City last week, Sanford Health President and CEO Bill Gassen said philanthropists and the health system’s namesake, Denny Sanford, made a $300 million gift to establish a medical center at Sanford’s Rapid City campus.
The new campus will expand access to specialty and services, including an emergency department, ICU, oncology center and a comprehensive women’s health program, including a labor and delivery unit and children’s services.
“We made a promise to this community and to all of you that we would expand comprehensive medical care right here in the Black Hills,” Gessen said. “This philanthropic investment will strengthen healthcare in this community and across the entire region. We hope Denny’s continued generosity serves as a powerful example to others who are passionate about supporting health care in this community.”
Why It Matters
Gessen said Sanford not only wants to provide world-class care in the communities it serves, but aims to be “one of the strongest corporate stewards in that community.”
The health system hopes to also attract nurses, technicians and physicians to the region, especially former military members who are serving at the nearby Ellsworth Air Force Base.
South Dakota recently submitted its application for funding through the federal government’s Rural Health Transformation Program after holding conversations with five rural areas, including Rapid City.
The governor’s office, along with the South Dakota Department of Health, said rural and frontier residents often face long distances to providers, limited transportation, lower incomes and workforce shortages that strain hospitals and clinics.
These factors, according to the state, contribute to higher rates of suicide and chronic disease and this investment would build capacity and resilience within rural healthcare systems to ensure lasting access to quality care.
The state’s five main goals for this funding is to improve rural health and wellness by promoting prevention and managing chronic disease, ensure sustainable health care access by strengthening local provider networks, developing the workforce through improved recruitment, retention and expansion of provider capacity in rural areas, encourage innovation with new care models and flexible payment systems a d expanding telehealth, data sharing and cybersecurity tools.
After the press conference for Black Hills expansion last week, South Dakota Governor Larry Rhoden said in an X post that Sanford’s investment builds upon his Rural Health Transformation plan “to keep Rapid City’s health-care system strong for years to come.”
“Western South Dakota continues to grow, and families across the Black Hills deserve strong, reliable access to quality health care," he wrote. "Sanford Health is making new investments and working with local partners to support that growth. I joined their Rapid City announcement of plans to expand care and strengthen services across the region.”
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What To Know
Sioux Falls-based Sanford Health is one of the largest rural health systems in the country, serving over 2 million patients across the upper Midwest including South Dakota, North Dakota, Minnesota, Wyoming, Iowa, Wisconsin and the Upper Peninsula of Michigan.
Sanford has previously partnered with Black Hills Orthopedic and Spine Center, Black Hills Surgical Hospital, Black Hills Urgent Care and Black Hills Surgery Center of Wyoming in 2024 to connect patients with the full range of care within the health system.
The new 480,000-square-foot center will include 168 inpatient beds, with a future expansion for another 168 beds, emergency department bays, surgical suites and procedure rooms, cath labs, imaging suites, a dialysis center, an oncology infusion center and children’s outpatient and inpatient services.
Sanford Health’s Board of Trustees member Marnie Herrmann said this new medical center campus will “add vitality and sustainability to healthcare in our region.”
“It is not just about bricks and mortar,” she said. “It’s about creating access, improving outcomes, and ensuring world-class care close to home.”
In addition to the new facility, Sanford Health also plans to invest $10 million over the next 10 years in K-12 schools, technical colleges and universities across the Black Hills.
Kyle Wiese, president and CEO of the Sanford Black Hills region, said in a statement that building a robust and sustainable healthcare 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,” she said.
Construction of the Black Hills Medical Center campus is set to begin in 2027. It is expected to be completed by 2030.
What People Are Saying
Sanford Health President and CEO Bill Gassen said during the press conference: “We are going to make good on our promise that we are going to provide the highest level of care, that we’re going to expand the services that are available in this community. This community deserves to have access to world-class care.”
Lew Papendick, M.D., board chair of the Sanford Black Hills Surgical Hospital, said in a statement: “This is a momentous day for patients and residents in the Black Hills. 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.”
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