Avera to invest $245 million in construction at two Sioux Falls, South Dakota, campuses

April 2024
At an event announcing Avera Health construction plans, Regional President and Avera McKennan Hospital & University Health Center CEO Dr. Ronald Place explains the building project to employees. The project, which will take place on two Sioux Falls, South Dakota, campuses, is to cost about $245 million.



Avera Health plans to undertake $245 million in construction at two campuses in Sioux Falls, South Dakota, in order to expand women's, children's, digestive health, orthopedic, surgery, cancer care and other services. This is the largest building project in the health system's history and the largest expansion of hospital space in Sioux Falls' history.

By early 2027, Avera plans to erect a six-story tower at its flagship medical center, Avera McKennan Hospital & University Health Center. This tower will create a new main entrance for the facility and will establish a focused area for women's and children's services. The building project will add 158 beds, bringing the medical center's capacity to 802 beds.

Avera Health employees viewing a rendering of part of the planned expansion, at an event announcing construction plans for two Avera McKennan campuses.

In a press release, Regional President and Avera McKennan Hospital & University Health Center CEO Dr. Ronald Place notes that Avera has been steadily expanding its pediatric program over the past 20 years. He says the new tower will allow for Avera to have the "modern and expanded facilities to complement the compassionate and excellent care our teams provide" for women and children.

The Avera on Louise Health Campus is a department of Avera McKennan, offering specialty care and other clinical services. At that campus, Avera will add a three-story building for digestive health services. When those clinicians move to the new building, Avera will use the vacated space for an expansion of orthopedic services. That campus construction is expected to be complete in 2026.

According to the release, the projects will help accommodate increased demand for health services as Sioux Falls' population has grown. That growth is projected to continue. It is estimated the population of the Sioux Falls metropolitan statistical area will increase by more than 100,000 people in the next 15 years. The current population is more than 200,000.

Avera expects to begin construction at both campuses this summer.

Avera has 37 hospitals and a network of additional sites serving South Dakota and surrounding areas of Minnesota, Iowa, Nebraska and North Dakota.


Copyright © 2024 by the Catholic Health Association of the United States

For reprint permission, contact Betty Crosby or call (314) 253-3490.