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

Sanford Health has announced a substantial $300 million donation from philanthropist Denny Sanford to establish a new medical campus in Rapid City, South Dakota. The Sanford Black Hills Medical Center will be situated at 7220 Mt Rushmore Road, adjacent to the recently acquired Black Hills Orthopedic & Spine Center. Construction is slated to begin in 2027, with a projected completion in 2030.

The new facility will encompass 480,000 square feet and will feature 168 inpatient beds, a comprehensive women’s health center that includes a labor and delivery unit, and specialized services for children. Plans also exist to potentially double the capacity in the future, reflecting the center’s aim to enhance specialty care in the region.

A Focus on Comprehensive Healthcare Services

The medical center’s offerings will 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, emphasized the impact of this donation, 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.”

According to Dr. Lew Papendick, board chair of the Sanford Black Hills Surgical Hospital, the new campus will help attract more physicians and create additional job opportunities in the area. “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,” Papendick noted.

This initiative follows a strategic expansion by Sanford Health into the West River market, as the organization continues to acquire local healthcare providers. Over the past year, Sanford has added the Black Hills Orthopedic and Spine Center, Black Hills Surgical Hospital, Black Hills Plastic Surgery, and Creekside Medical Clinic to its network. These developments come as Monument Health, a direct competitor, has historically been the primary healthcare provider in Rapid City. Leadership from both organizations has previously discussed the evolving competitive landscape and the benefits of increased healthcare options for local patients.

Investment in Future Workforce Development

The announcement also includes a significant commitment to workforce development in the region. Starting in 2026, Sanford Health plans to invest $10 million over the next decade to collaborate with K–12 schools, technical colleges, and universities throughout the Black Hills. This investment comprises $3 million for the Build Dakota program, which supports technical education, and $2.5 million to expand the Aspire program, aimed at providing hands-on learning opportunities for K-12 students.

“Building a robust and sustainable healthcare workforce begins with education,” stated Kyle Wiese, president and CEO of the Sanford Black Hills region. “These investments empower local students to pursue careers in healthcare, 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, highlighting his long-standing commitment to improving healthcare access and services in the region.