Sutter Health to Invest $1 Bn in New California Medical Center, Ambulatory Expansion

The health system confirmed that the new facility will include a 200-bed medical center and a regional ambulatory care complex, with expansion plans.

Sutter Health has announced a $1 billion investment to expand healthcare services across Northern California's East Bay region, including the development of a flagship medical campus in Emeryville.

The health system confirmed that the new facility will include a 200-bed medical center and a regional ambulatory care complex, with expansion plans.

The 335,000-square-foot medical center will house labor and delivery services, surgical units, intensive care, emergency care, and a neonatal intensive care unit. The facility is designed to accommodate additional patient rooms if needed. The ambulatory complex, set to begin operations by 2028, will offer specialty care, imaging, and laboratory services.

Warner Thomas, president and CEO of Sutter Health, said, “Our Emeryville campus project represents one of the most significant investments we’re making across our system over the next decade and is part of our broader vision to meet the community’s growing demand for expanded access to our services across the East Bay footprint.”

Workforce Expansion

As part of its expansion, Sutter Health aims to recruit additional primary and specialty care physicians to improve appointment access and streamline referrals. The new campus will be staffed with 190 clinicians specializing in both primary and specialty care.

In addition to the Emeryville campus, Sutter is planning to enhance behavioral health services at its Herrick campus in Berkeley. Meanwhile, its Alta Bates campus will continue as an acute care facility until the new medical center becomes operational.

Following the transition, the Alta Bates site will be repurposed for ambulatory surgery, urgent care, and potentially skilled nursing services.

Thomas highlighted Sutter’s commitment to improving healthcare accessibility, said, “Too many people face challenges in accessing the care they need. At Sutter, we’re committed to breaking down those barriers—expanding care facilities, enhancing imaging capabilities, improving online appointment scheduling, and collaborating with the Sutter East Bay Medical Group and our community physician partners to attract more primary and specialty care physicians.”

Additional Renovations and Future Plans

Beyond the hospital and ambulatory care expansion, Sutter Health is also renovating a medical office building in Berkeley to provide primary care and OB-GYN services. Other renovation projects are planned to support the region's growing healthcare needs.

Sutter Health's broader strategy includes investing in healthcare workforce development and strengthening its partnerships with community providers. “These efforts will allow us to care for more patients while also investing in programs and partnerships that build the future healthcare workforce—ensuring more people get the right care when and where they need it,” Thomas added.

The health system's investments aim to address increasing patient demand, improve service accessibility, and expand healthcare infrastructure in Northern California.