Sutter Health Plans to Build Medical Campuses in Santa Clara

A consortium led by Sutter Health wants to replace vacant office buildings in Santa Clara with two medical campuses totaling 1 million square feet.

The Sacramento-based nonprofit has joined forces with The Sobrato Organization and Palo Alto Foundation Medical Group to build an east and a west campus a mile apart from each other along Mission College Boulevard, the Silicon Valley Business Journal reported.

The $800 million campuses will include ambulatory services for medical needs that don’t require hospital care. They will replace two large, vacant office buildings.

“More and more care is transitioning outside the hospital,” Warner Thomas, president and CEO of Sutter Health, told the outlet. “Access to physician care and outpatient services is critically important and difficult, quite frankly.”

The Sutter West Santa Clara Campus would include five medical office buildings at 2811, 2817, 2821, 2831 and 2841 Mission College Boulevard.

The Sutter East Santa Clara Campus would include three buildings at 2431, 2441 and 2451 Mission College Boulevard, across the Great American Parkway.

Sutter and The Sobrato Organization signed a 75-year ground lease with West Valley-Mission Community College District for the west campus site. Terms of the deal were not disclosed.

It’s not clear how the consortium will obtain the east campus property, or who owns it. It’s also unclear if the medical campus project has been approved for development.

The 300,000-square-foot east campus, which would begin its phased opening late next year, would focus on comprehensive primary care, according to the Business Journal. It would include adult and pediatric urgent care, cardiology, advanced diagnostic lab and imaging, gynecology and dermatology.

Opening in 2027, the 700,000-square-foot west campus would have a focus on women’s health, heart and vascular care, cancer, orthopedics and sports medicine.

West Valley-Mission College plans to also develop a 70,000-square-foot STEM Center next to the Sutter West Santa Clara Campus.

In addition to its growth in Santa Clara, Sutter Health plans to open 27 ambulatory care centers across Northern California by 2027.

— Dana Bartholomew