SACRAMENTO BUSINESS JOURNAL: KAISER PERMANENTE BREAKS GROUND ON $1 BILLION RAILYARDS MEDICAL CENTER, TO BRING 3,000 JOBS
Kaiser Permanente officially broke ground Wednesday on its $1 billion-plus Railyards Medical Center, an 18-acre medical campus set to transform Sacramento’s health care landscape and downtown.
The facility, scheduled to open in 2029, is expected to create thousands of jobs, and serve as a key anchor for downtown redevelopment.
“This project will be an economic engine for this area,” Jay Robinson III, senior vice president and area manager for Kaiser Permanente Sacramento and South Sacramento, said at the groundbreaking event. “It will bring thousands of jobs and be a catalyst for more economic development in the Railyards.”
The campus at 365 Railyards Blvd. will include a 662,050-square-foot hospital with 310 private beds; a 70-treatment-bay emergency room; an intensive care unit; 14 operating rooms; a 173,000-square-foot, five-story medical office building with 174 provider offices and 66 exam rooms; a 1,500-stall parking structure; and Kaiser Permanente’s Advanced Neuroscience Center, offering specialized stroke and spinal treatments.
Kaiser officials say the medical center will improve access to care for the 961,000 Kaiser Permanente members in the Greater Sacramento area. The maternity unit will also bring childbirth services back to Downtown Sacramento, a key component of Kaiser’s health care expansion.
“We're bringing back babies,” Robinson said. “We’re going to be bringing new lives into the world, and I know our members are going to really appreciate that.”
Once operational, the Railyards Medical Center will employ nearly 3,000 health care professionals and support staff, according to Kaiser. During construction, up to 600 union workers will be on-site daily.
“This isn’t just about health care — it’s a major economic boost,” Sacramento Mayor Kevin McCarty said. “Bringing a major employer like Kaiser Permanente into the Railyards will help revitalize our downtown, creating jobs and driving additional investment into the area."
The Railyards development, one of the largest urban infill projects in the country, also includes plans for housing, a new soccer stadium and commercial space.
“We know that health care is a major economic driver," U.S. Rep. Doris Matsui (D-Sacramento) said. "This project will not only expand medical services but also bring much-needed economic vitality to Downtown Sacramento."
The Railyards Medical Center will be one of the first all-electric hospitals in the state, according to Kaiser. It will have solar panels, electric vehicle charging stations, drought-tolerant landscaping and be built with low-emission materials.
"Hospitals are major energy consumers, but this facility will be different,” Robinson said. "We’re using clean energy and sustainable practices to ensure a minimal environmental impact."
Kaiser Permanente’s Railyards Medical Center is part of a larger regional expansion strategy, which also includes a six-story, 138-bed tower in Roseville, and a 42,000-square-foot emergency department expansion at Kaiser’s South Sacramento Medical Center.
“Our mission is to bring top-tier health care to our members where they need it most,” Robinson said. “This new facility will provide comprehensive, world-class care, while also being an economic and environmental leader for the community."
Construction is expected to take four years, with completion targeted for 2029. The Railyards Medical Center will eventually replace Kaiser’s current hospital on Morse Avenue, which has served the Sacramento region for over 60 years. Plans for that facility’s future use are still being determined.
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