Photo: Rendering November 2025

For community inquiries, please contact: katie.causey@sutterhealth.org

Sutter Medical Center, Santa Clara In the News

Recent media coverage:

KQED Silicon Valley Business Journal – Sutter Health to build record-setting new hospital campus in Santa Clara

San Francisco Chronicle – Sutter plans major new Bay Area hospital. Here’s where

Becker’s Hospital Review – Sutter’s $2.8B Silicon Valley plan includes new medical center

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Sutter Expands Silicon Valley Care with New Medical Center

November 17, 2025

Investment marks the largest in the organization’s history, encompassing two new campuses totaling one million square feet of ambulatory space and a new medical center

NORTHERN CALIF. — As part of its vision to be the most comprehensive, integrated health system in Northern California, Sutter Health today announced plans to build a new medical center on a 13.63-acre site near Levi’s Stadium in Santa Clara. The new flagship facility is part of Sutter’s more than 100-year commitment to expanding access and meeting the evolving needs of patients across the region. As part of a dual-campus investment, Sutter is bringing even more integrated healthcare services directly to one of the fastest-growing communities in the state. It will also build on the significant physician presence in Silicon Valley through the Palo Alto Foundation Medical Group (PAFMG).

“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,” said Warner Thomas, president and CEO of Sutter Health. “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.”

Expanding Access to Medical Center Services

Sutter will build the planned eight-story medical center at 2831 and 2841 Mission College Blvd., replacing the existing office park.

Once complete, the approximately 850,000-square-foot medical center will feature:

• 302 licensed beds in private patient rooms
• Private patient rooms
• A full-service emergency department
• Intensive care units
• Labor and delivery suites and a Level III neonatal intensive care unit
• Advanced operating rooms and surgical services
• Environmentally responsible building design
• A rooftop helipad for emergency transport
• Access for community and community physicians

 

 

 

 

 

 

 

A Connected, Patient-Centered Care Destination

Sutter Medical Center, Santa Clara is part of the health system’s plan for a broader integrated healthcare ecosystem in Silicon Valley. It will offer a comprehensive location with the latest state-of-the-art technology and innovations that enhance both patient care and patient experience, such as virtual monitoring, personalized patient controls and best practices around use of space to ensure a welcoming environment for patients, visitors and staff.

“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,” said Ken McNeely, chair of the Sutter Health board of directors. “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.”

Patients will benefit from seamless connections across the full continuum of care – from the dedicated medical center to primary care, urgent care, specialty clinics, mental health services, home care, diagnostic imaging and ambulatory surgery centers. In 2024, Sutter and The Sobrato Organization announced plans in Santa Clara that included four buildings, more than 1 million square feet of ambulatory space adjacent to the medical center and at a second site about one mile away, creating hubs for specialty care in cancer, women’s health, orthopedics and sports medicine, heart and vascular services and more.

The Sutter East Santa Clara Care Center at 2441 Mission College Blvd. opened on Oct. 20, making it the first of the new ambulatory buildings to open. The center offers adult and pediatric urgent care, internal medicine, family medicine, pediatrics, cardiology and cutting-edge lab and imaging services.

The future medical center, combined with the Sutter East and West Santa Clara Care Centers, represents the largest investment in Sutter’s history – totaling $2.8 billion – and will ensure patients across Silicon Valley have access to the right care in the right place and at the right time.

“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,” said Dr. Kurt VandeVort, CEO of Palo Alto Foundation Medical Group. “PAFMG has been deeply rooted in this community for nearly a century, proudly serving generations of patients with compassion and excellence. 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, reinforces continuity of care and delivers a personalized experience grounded in clinical excellence.”

Meeting a Critical Community Need

Sutter is building the new medical center in an area that is underserved by health systems. Currently, area residents must travel 20 minutes or more to reach the nearest hospital. As the local population continues to grow and age, the demand for hospital and outpatient services will increase.

Sutter’s investment in a new medical center in Santa Clara will bridge this gap in care, bringing vital lifesaving services closer to where people in Silicon Valley live and work. The project will also create new jobs and boost the local economy, delivering both health and opportunity to the community.

“Santa Clara is growing, and with that growth comes a greater need for comprehensive healthcare services,” said Santa Clara Mayor Lisa Gillmor. “This new medical center reflects our shared commitment to expanding access and meeting the needs of our community.”

Sutter projects the medical center will open in late 2031.

Future Workforce, Partnerships and Graduate Medical Education Programs

Sutter’s new care facilities in the Greater Silicon Valley region are projected to support more than 5,000 jobs once fully open by 2031, including more than 3,000 direct Sutter employee and clinician positions, according to an independent economic impact analysis completed by EY, the global professional services organization. Sutter expects these roles to offer compensation higher than the regional average, delivering high-quality employment opportunities to the community. Additionally, during the development phase the project is expected to support more than 2,500 jobs across construction, supplier industries and the broader economy. The anticipated total economic impact of the project during the development phase is $3.3 billion.

The organization is deeply committed to hiring and building the future healthcare workforce. Through the expansion of its Graduate Medical Education (GME) programs, the organization plans to train more than 1,000 residents and fellows each year by 2030, positioning Sutter as the largest community-based healthcare training institution in Northern California. Beginning in 2027, Sutter plans to create residency and fellowship programs in internal medicine, OB/GYN, general surgery and radiology in Santa Clara.

In partnership with PAFMG, Sutter is also recruiting and welcoming hundreds of new physicians and advanced practice clinicians to serve the growing patient population in the region. Since 2022, PAFMG has hired 750 physicians and clinicians, including nearly 200 so far this year, demonstrating steady momentum toward the medical group’s goal of adding 400 physicians in Silicon Valley by 2030. This is in addition to the hundreds of community physicians Sutter partners with to fuel care delivery in the area. These collective efforts aim to ensure that patients today – and future generations – have timely access to high-quality care that well-trained clinicians provide.

Sutter also leads workforce development programs that build clear paths for growth in healthcare career pathways beyond physicians and advanced practice clinicians. In Santa Clara, Sutter is collaborating with West Valley-Mission Community College District on programs that include nursing pathways and a new bachelor’s degree in emergency services administration.

“Sutter Health’s new medical center in Santa Clara represents a major investment in the future of healthcare for Silicon Valley,” said Assemblymember Patrick Ahrens. “As our region grows and innovates, so must our commitment to the health and well-being of the people who drive that progress. This facility is more than just a building; it’s a promise to deliver accessible, high-caliber care to diverse communities, support the health care workforce and strengthen the infrastructure that sustains a thriving Silicon Valley.”

Community Commitment

Beyond the walls of its clinics and hospitals, Sutter invests in programs and partnerships that directly improve the health of communities. The organization provides funding and support to federally qualified health centers, such as Bay Area Community Health in San Jose and Second Harvest Food Bank of Silicon Valley, so they can expand services for working families and underserved populations. Sutter is also partnering with local schools and colleges to grow healthcare career pathways and improve long-term access to care.

In addition, through initiatives like sponsorship of Bay FC, Northern California’s first National Women’s Soccer League team, Sutter is advancing inclusion and wellness by encouraging active lifestyles and promoting community belonging. These efforts reflect the organization’s belief that improving health outcomes requires addressing both clinical care and the broader social and community factors that influence well-being.

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Sutter Health Announces New ‘Flagship’ Healthcare Campuses in Silicon Valley 

December 17, 2024

Sutter Health plans to develop 1 million square feet across two Santa Clara campuses less than a mile apart in the health system’s latest initiative to create a regional healthcare destination, expand access and bring connected, comprehensive care closer to home.

NORTHERN CALIF. — In a significant move to expand access to comprehensive, high-quality care, Sutter Health today unveiled plans to develop approximately 1 million square feet across two healthcare campuses in the City of Santa Clara. The not-for-profit healthcare system, in collaboration with the region’s 95-year-old Palo Alto Foundation Medical Group (PAFMG) and its 2,000 Sutter-aligned physicians and The Sobrato Organization, will renovate two large vacant office campuses to create a connected, regional healthcare destination. Across these two campuses, patients will be able to access a full spectrum of integrated ambulatory services — from primary and specialty care, to imaging, lab and diagnostic services, ambulatory surgery and more — and hundreds of new physicians, advanced practice clinicians, and employees will also be added to support this patient care expansion.

“Sutter Health is launching a visionary, future focused phased expansion plan in the heart of Silicon Valley and across our California region to improve access to patient care that is in high demand,” said Warner Thomas, president and CEO of Sutter Health. “As part of our continued commitment to expanding physician services, ambulatory and outpatient care in the Silicon Valley and providing a differentiated care experience, we’re working closely with our physician partners at PAFMG and development partner The Sobrato Organization to plan and open these flagship healthcare destinations across two connected campuses.

“Our goal is to address the healthcare needs of the region and tackle the challenges patients face when trying to get appointments and referrals by advancing a seamless and integrated care experience, attracting more primary and specialty care physicians to the area,” Thomas said. “We are also investing in programs and educational partnerships with West Valley-Mission Community College District to build the healthcare workforce of the future.”

Two Santa Clara Sites Less Than a Mile Apart

In November, Sutter and The Sobrato Organization completed a 75-year ground lease with West Valley-Mission Community College District (West Valley–Mission) on a five-building campus located at 2811, 2817, 2821, 2831 and 2841 Mission College Blvd., now known as the Sutter West Santa Clara Campus. A second lease for three buildings about a mile away at 2431, 2441 and 2451 Mission College Blvd. was signed in 2023 for what will become the Sutter East Santa Clara Campus.

This expansion announcement comes at a time when PAFMG’s physician ranks are expanding significantly to meet patient demands and space is needed to accommodate this growth, with nearly 300 physicians hired in 2023 and 2024 and plans to hire hundreds more over the next five years.

“Our vision is to provide a full range of healthcare services to people in the Greater Silicon Valley, ensuring they have timely access to excellent care close to home,” said Kurt VandeVort, M.D., CEO of Palo Alto Foundation Medical Group. “As part of this significant investment in the region and in Santa Clara, we are poised to add several hundred physicians to these two campuses and enable our ability to care for hundreds of thousands of more patients by 2030.”

A Long-Term Commitment to Expanding Healthcare Access in Northern California

Access to high-quality healthcare remains one of the nation’s most pressing challenges, and the need is especially evident in the Greater Silicon Valley, where the demand is so great some patients wait more than a month for a scheduled appointment. To meet this growing need, Sutter is investing in these new Santa Clara ambulatory healthcare campuses, in addition to plans announced in June for a new care center in Morgan Hill, all part of a broader initiative to open 27 new ambulatory care centers across Northern California by 2027.

The growing shortage of physicians, nurses and other healthcare workers complicates access to care. Sutter is equally committed to supporting the future of healthcare through workforce development. Newly accredited Family Medicine and Internal Medicine residency programs will launch in the summer of 2025 and Sutter plans to grow its Graduate Medical Education programs to train 1,000 physician residents and fellows each year by 2030. Through new academic partnerships, Sutter plans to foster new pathways to attract a broad range of high-caliber clinical talent reflective of the diverse communities it serves.

A Comprehensive and Connected Regional Destination

A full spectrum of integrated, multi-specialty healthcare services means diagnostic imaging and lab services, exam rooms, treatment areas and support systems are all in one comprehensive regional hub, making it convenient for patients to coordinate visits for tests and office visits with their care teams.

Sutter West Santa Clara Campus (approximately 700,000 square feet): The west campus will focus on specialty services and will feature four destination centers of excellence in:

• Orthopedics and sports medicine

• Cancer

• Women’s health

• Heart and vascular care

The campus will also house comprehensive diagnostic imaging, lab and testing services and other aligned and differentiated specialty clinics with plans to welcome the first patients as early as 2027, when services will begin to open in a phased approach.

Sutter East Santa Clara Campus (approximately 300,000 square feet): The east campus will focus on comprehensive primary care, as well as specialty care services, an ambulatory surgery center and urgent care to ensure patients can get the best care in the most convenient and easy to access healthcare setting. Planned services include:

• Comprehensive primary care

• Specialty clinics (cardiology, neurology, urology, obstetrics and gynecology, ENT, plastics and general surgery, endocrinology, dermatology, gastroenterology and other procedural specialties)

• Advanced diagnostic lab and imaging

• Primary and specialty pediatric care

• Adult and pediatric urgent care

Mental health services will also be expanded in an ambulatory setting and integrated into overall care. By taking an innovative, team-based approach, Sutter will leverage the expertise of primary care providers, psychiatric consultants and care coordinators to support patients and manage treatment.

This is a phased project, with the first building on the Sutter East Santa Clara Campus expected to open in the latter half of 2025, and an anticipated investment of more than $800 million to develop both campuses, which will house several hundred physicians and advanced practice clinicians. Sutter looks forward to continuing to partner with community physicians and others who remain critical to healthcare delivery across the region.

“We want each person’s experience to be the best and most personalized possible, supported by state-of-the-art technology and digital capabilities,” said Kevin Cook, president of Sutter’s Greater Silicon Valley division. “These two healthcare campuses in Santa Clara will continuously connect physical assets with leading-edge digital tools—including AI, telemedicine and remote patient management—all of which will drive increased patient satisfaction and improve access to care.”

Partners Play Key Role in Advancing Healthcare Vision for Region

“We are excited to expand our partnership with Sutter Health as we build on an aligned vision to bring new ambulatory healthcare services to patients in Santa Clara and surrounding areas. We know there’s growing patient demand and a significant need for access to more high-caliber healthcare services in the region, and together, we are uniquely positioned to bring clinical expertise and a shared commitment to community leadership and impact,” said Sobrato CEO Tony Mestres. “This transaction represents the start of a phased approach to engage physicians, patients and the community in dialogue and discovery, while also collaborating with technology partners and others to explore innovative solutions. We appreciate the support of West Valley-Mission on the ground lease process and look forward to ongoing collaboration.”

Additionally, Sutter looks forward to partnering with West Valley-Mission to accelerate its workforce development programs, which today include an associate degree in nursing program, as well as programs for certified nursing assistants, licensed vocational nurses and registered nurses; a new bachelor of science degree in emergency services administration; and plans to develop a 70,000-square-foot STEM Center adjacent to the Sutter West Santa Clara Campus that will expand West Valley-Mission’s science, technology, engineering and mathematics programs.

“This collaboration embodies our district’s commitment to fostering innovation that serves both our students and the broader community,” said West Valley-Mission Community College District Chancellor Bradley Davis. “By integrating a premier healthcare facility with our academic environment, we’re creating unparalleled opportunities for students to engage in real-world clinical experiences while addressing critical healthcare needs in our region.”