A Turner Construction-led joint venture has marked a major milestone for healthcare in South Texas, topping out the $550 million University Health Palo Alto Hospital on San Antonio’s fast-growing South Side.

Turner, headquartered in New York City, teamed up with San Antonio-based Byrne Construction Services and owner’s representative Straight Line Management to bring the complex project to this point. Earlier this month, crews placed and signed the highest steel beam, a tradition that signifies the completion of a building’s structural framework and celebrates the hundreds of craft workers whose labor makes the project possible.

“Reaching this milestone is a testament to the incredible collaboration between Turner, Byrne, Straight Line and our many trade partners,” said Kyle Weller, Turner vice president and general manager. “Together, we are building a world-class health care facility that reflects the strength and spirit of this community.”

The new Palo Alto Hospital is part of University Health’s largest expansion to date and demonstrates the health system’s commitment to keeping care local and accessible as the region experiences historic growth. The San Antonio metro area is projected to add over 700,000 people by 2030 — a 28% jump — and University Health’s network must keep pace with that surge to avoid straining existing hospitals and clinics.

When finished, the Palo Alto campus will feature a full-service emergency department, specialized labor and delivery suites, a neonatal intensive care unit (NICU) for the most vulnerable newborns, advanced surgical operating rooms, and modern inpatient facilities. An attached medical office building will support specialty care, family medicine and urgent care, helping deliver a continuum of services under one roof.

In addition to the Palo Alto project, University Health is investing in the Retama Community Hospital, now under construction on San Antonio’s northeast side. That $450 million facility, managed by Sandy, Utah-based Layton Construction, will further expand capacity and reduce travel times for residents who currently rely on central hospitals for specialized care.

Together, these two hospitals represent nearly $1 billion in new health infrastructure for the region — an economic boost that supports local construction jobs and small businesses. Turner’s local hiring commitments and partnerships with regional subcontractors ensure that a significant portion of the workforce and project spending stays in the San Antonio area, fueling broader economic growth.

Community leaders have praised the investment, citing the role modern hospitals play not just in delivering care but in anchoring neighborhoods, attracting medical talent, and providing high-quality jobs. The South Side has long called for more healthcare options closer to home, and the new Palo Alto facility answers that need with services designed to handle everything from routine checkups to high-risk births.

The project also prioritizes patient experience and future flexibility. The design includes adaptable patient rooms, advanced infection control systems, energy-efficient building systems, and integrated technology to support next-generation medical equipment and telehealth.

With the steel structure now complete, the Turner JV and its partners will shift their focus to interior buildout, specialized mechanical, electrical and plumbing systems, and extensive medical equipment installations. Crews will also finish out public spaces, green areas, parking, and community amenities that make the new hospital a true asset for surrounding neighborhoods.

University Health Palo Alto Hospital and Retama Community Hospital are both scheduled to open in 2027, aligning with University Health’s broader plan to meet surging demand and deliver compassionate, cutting-edge care for decades to come.

Originally reported by Joe Bousquin in Construction Dive.