One of the nation’s leading commercial builders has launched construction on a major healthcare project in California’s Central Valley.
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DPR Construction, headquartered in Redwood City, California, broke ground Jan. 15 on the Advanced Cancer Center and Care Complex for Sutter Health, a Sacramento-based not-for-profit health system. The contractor will deliver the project through an integrated project delivery (IPD) approach designed to align designers, builders, and owners under a single agreement.
The architect for the project is HGA, a Minneapolis-based commercial design firm.
The IPD model brings together parties involved in design, fabrication and construction to streamline decision-making and reduce waste. DPR Sacramento business unit leader Abe Sipes said the approach is already shaping how the team works on site.
The collaboration will result in significant enhanced efficiency, said Sipes. He added the DPR team is using lean construction methods to deliver the facility.
Once complete, the estimated $380 million complex will rise four stories and encompass 165,000 square feet of patient-centered medical space, according to a Sutter Health news release.
“This new complex will serve as a destination for care in the Central Valley, offering advanced cancer services alongside outpatient care and a surgery center,” said Warner Thomas, president and CEO of Sutter Health. “It ensures patients can count on coordinated, high-quality care across multiple specialities all in one location.”
Plans call for the first and second floors to house the Advanced Cancer Care Center, an all-inclusive hub providing clinic visits, cancer screenings, infusion and radiation therapy, imaging, laboratory services, a pharmacy and complementary therapies.
The third floor will contain an ambulatory surgery center featuring four operating rooms, four procedure rooms and space for future expansion. According to Sutter, this will be the first ambulatory surgery center operated by the health system in Modesto.
The fourth floor will accommodate more than 25 clinicians and 50 exam rooms, creating capacity for growing regional demand. DPR expects to complete and open the facility in 2029.
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Healthcare construction has remained one of the most resilient sectors of commercial building, particularly in California, where aging facilities and population growth are driving new investment. The Modesto complex is intended to consolidate services that are currently spread across multiple locations, improving patient access and care coordination.
By using lean construction techniques and the IPD framework, DPR and Sutter aim to control costs and schedules on a project that must meet strict clinical and regulatory requirements. Stakeholders say the model encourages transparency and early problem solving compared with traditional design-bid-build methods.
The groundbreaking ceremony on Jan. 15 drew project partners, community leaders and Sutter officials, marking what local leaders described as a transformative investment in Central Valley healthcare infrastructure.
Originally reported by Sebastian Obando, Reporter in Construction Dive.
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