Sanford Health is taking a major step forward in reshaping the future of healthcare in Western South Dakota with a massive new medical campus planned for Rapid City. The Sanford Black Hills Medical Center, expected to open in 2030, is poised to become one of the most significant healthcare investments in the region’s history, dramatically expanding access to specialty care, workforce training, and advanced medical services.
During a community announcement in downtown Rapid City, Sanford Health President and CEO Bill Gassen highlighted the transformative nature of the project and recognized the monumental support behind it.
“Denny Sanford has once again made a transformational investment,” Gassen said. “His newest landmark gift of $300 million will help Sanford Black Hills Medical campus come to life right here in Rapid City.”
The philanthropic boost represents a major portion of the project’s $500 million-plus total cost. Sanford—who attended the announcement—has now contributed nearly $2 billion to Sanford Health and almost $3 billion to causes across South Dakota.
The announcement drew an audience of state and local leaders, including Gov. Larry Rhoden, Rapid City Mayor Jason Salamun, business leaders, and members of the Sanford Health Board of Trustees. The crowd erupted in applause upon hearing the scale of the investment.
For Gassen, the project is a fulfillment of Sanford Health’s long-standing promise.
“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.”
When completed, the 480,000-square-foot campus will feature 168 inpatient beds, with infrastructure to double capacity over time. Along with state-of-the-art technology and specialized services, the expansion is designed to meet both existing and future healthcare needs of a rapidly growing region.
The new medical center will bring an array of advanced services, including:
“This new medical center campus will add vitality and sustainability to healthcare in our region,” said Marnie Herrmann, Sanford Health Board of Trustees member. “It is not just about bricks and mortar. It’s about creating access, improving outcomes, and ensuring world-class care close to home.”
Mayor Jason Salamun echoed that enthusiasm.
“We are awfully proud to see this amazing investment in our community,” he said. “We pray and hope for even better things to come.”
Sanford Health has spent recent years building strong clinical and operational ties in the region—such as its 2024 partnership with Black Hills Orthopedic and Spine Center and Black Hills Surgical Hospital. Gassen emphasized the organization’s long-term commitment:
“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.”
Sanford leaders say the new center will also help draw experienced clinicians and rising healthcare professionals to the Black Hills.
“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.”
Physician leadership echoed the importance of top-notch recruitment.
“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 Dr. Lew Papendick, chair of the Sanford Black Hills Board of Directors.
The investment is also expected to benefit military families and transitioning service members from Ellsworth Air Force Base, a major community anchor.
“As those men and women retire… we oftentimes find that to be some of our best and most talented team members,” Gassen noted.
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Sanford Health is committing $10 million over ten years to strengthen the region’s healthcare workforce pipeline beginning in 2026. The initiative includes:
“Making sure we have the workforce locally and also from around the community, it will take some involvement with the universities,” Wiese said. “I think they’re ready to rise to the occasion and they’re excited about it.”
Sanford already trains 350 residents and fellows annually, with 40% staying at Sanford and 70% remaining in the region.
Gassen added:
“Rapid City and the greater Black Hills is an incredible community to be able to recruit top tier talent to. We’re excited about the opportunity to continue to do that and to deepen those relationships that have already been established.”
Groundbreaking for the medical center is scheduled for 2027, with completion expected by 2030.
At the groundbreaking ceremony, Gassen reaffirmed Sanford’s long-term dedication:
“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.”
Originally reported by Justin Wulf in Sanford Health.
