Sanford Health is building on its investment in Western South Dakota with a new state-of-the-art medical center campus in Rapid City to expand access to specialty care and services.
“Denny Sanford has once again made a transformational investment,” Sanford Health President and CEO Bill Gassen said during a community announcement in downtown Rapid City. “His newest landmark gift of $300 million will help Sanford Black Hills Medical campus come to life right here in Rapid City.”
To date, Mr. Sanford, who sat in the front row during the announcement, has given nearly $2 billion to Sanford Health and nearly $3 billion to organizations across South Dakota.
The audience, which included South Dakota Gov. Larry Rhoden, Rapid City Mayor Jason Salamun, First Premier Bank CEO and member of the Sanford Health Board of Trustees Dana Dykhouse, and Premier Bankcard CEO Miles Beacom, erupted in applause at the news.
For Gassen, the new medical center represents a promise made and a promise kept.
“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,” he 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.”
What’s coming to campus
The 480,000 square-foot campus will feature 168 inpatient beds, with space for an additional 168 beds. The total cost of the project is estimated to cost more than $500 million. Mr. Sanford’s gift of $300 million is expected to fund a material portion of the total project. The remaining costs are anticipated to be covered by other sources, including additional philanthropy. It will also include:
- Emergency department bays
- Surgical suites and procedure rooms
- Cath labs
- Full inpatient and outpatient imaging suites
- Dialysis center
- Oncology infusion center
- Children’s outpatient and inpatient services
“This new medical center campus will add vitality and sustainability to healthcare in our region,” said Marnie Herrmann, who works as a senior banking executive in Rapid City and serves on Sanford Health’s Board of Trustees. “It is not just about bricks and mortar. It’s about creating access, improving outcomes, and ensuring world-class care close to home.”
Mayor Salamun was among the first to welcome Sanford Health to Rapid City.
“We are awfully proud to see this amazing investment in our community,” he said. “We pray and hope for even better things to come.”
In addition to Dykhouse and Herrmann, other members of the Sanford Health Board of Trustees in attendance at the announcement included Maureen McCausland, DNSc, Stephanie Herseth Sandlin, Kevin Schieffer and David Shulkin, M.D.
Sanford’s commitment to Black Hills
Sanford Health partnered with Black Hills Orthopedic and Spine Center and Black Hills Surgical Hospital in 2024. This adjacent medical center elevates Sanford’s commitment to the region.
“Sanford Health has a rich history of every community where we are established, we also make sure that not only do we provide world class care in that community, but we also seek to be one of the strongest corporate stewards in that community,” Gassen said during a press conference following the announcement.
Maintaining a strong relationship with the community means not only being the best place to receive care, but also the best place for those answering the call to provide care.
“What we are building here, this next chapter for the Black Hills is going to be something very special that I think will be a beacon,” said Kyle Wiese, president and CEO of the Sanford Black Hills region. “People, not just from our region, but from around the broader region, are going to look for opportunities here in the Black Hills.”
Those opportunities include bringing in the right providers for the community.
“If we set our aim for the highest possible healthcare good, that’s going to attract some of the best professionals, whether it’s nurses, technicians, physicians, and that’s our goal,” said Lew Papendick, M.D., chair of the Sanford Black Hills Board of Directors.
That also includes being an employer of choice for members of the military, especially those at nearby Ellsworth Air Force Base.
“As those men and women retire from their career and leave that and come into the civilian practice, we oftentimes find that to be some of our best and most talented team members,” said Gassen, whose father was stationed at Ellsworth.
Investment in education and workforce
Starting in 2026, Sanford Health also plans to invest $10 million over the next decade to partner with K-12 schools, technical colleges and universities across the Black Hills including:
- $2.5 million: Expand the Aspire program to foster students’ interest in health care and provide hands-on learning opportunities for more than 13,000 K-12 students
- $3 million: Invest in Build Dakota to support in-demand technical education
- $4.5 million: Expand sponsorships at regional post-secondary educational institutions
“Making sure we have the workforce locally and also from around the community, it will take some involvement with the universities,” said Wiese. “I think they’re ready to rise to the occasion and they’re excited about it.”
Sanford Health trains roughly 350 residents and fellows each year, with 40% staying with Sanford and 70% staying within the region to practice medicine.
“Rapid City and the greater Black Hills is an incredible community to be able to recruit top tier talent to,” said Gassen. “We’re excited about the opportunity to continue to do that and to deepen those relationships that have already been established.”
Construction on the Black Hills Medical Center campus is scheduled to begin in 2027 with completion expected by 2030.
“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,” Gassen said during the groundbreaking ceremony later in the afternoon. “This community deserves to have access to world-class care.”
Learn more
- Landmark gift establishes Sanford Black Hills Medical Center
- Rapid City-based Creekside Medical Clinic to join Sanford
- New assisted living, memory care services open in Rapid City
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