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SACRAMENTO BUSINESS JOURNAL: SUTTER HEALTH BREAKS GROUND ON $67.8 MILLION SPECIALTY CARE CENTER IN ELK GROVE

April 23, 2025

Sutter Health broke ground Wednesday on a $67.8 million specialty care center that will expand access to a range of services in one of the region's fastest-growing cities.

Located at 8170 Laguna Blvd. in Elk Grove, the 56,000-square-foot, two-story facility will bring 22 new physicians to Sutter's Elk Grove campus, adding services in cardiology, neurology, OB-GYN, general surgery, urology and other specialties. The project is expected to be completed by fall 2026.

“We are creating a comprehensive health care destination — ensuring residents can access advanced specialty services right in their community,” Rachael McKinney, president of Sutter Health’s Greater Sacramento Division, said in an interview at the groundbreaking event. “This is just the latest example of our commitment to meeting the growing health care needs of this region.”

The new center will be co-located with an existing campus that houses urgent care, orthopedics, reconstructive surgery, podiatry and other outpatient services. McKinney said the new space will allow Sutter to backfill and expand existing services elsewhere on campus, including urgent care.

The center is part of a broader plan by Sutter to expand its footprint in the Sacramento region, which includes upcoming projects in Folsom, Roseville and Downtown Sacramento. McKinney said the Elk Grove site — acquired by Sutter more than 20 years ago — was always earmarked for future growth.

“This land has been under Sutter’s ownership for two decades. Now is the time to activate it,” she said.

U.S. Rep. Doris Matsui (D-Sacramento) said the project supports both public health and local workforce goals.

“This investment by Sutter Health is a vital step forward in bringing high-quality, specialized health care directly to the heart of southern Sacramento County,” Matsui said in an interview. “It will not only strengthen the region’s health care infrastructure — it will make care more convenient and responsive for families across our district.”

Matsui also said the project will have economic impact. “Health care is a huge economic driver,” she said. “You’re not just talking about doctors and nurses. You’re talking about the software specialists, techs, researchers and the entire pipeline of innovation and care.”

Leaders of Sacramento-based Sutter Health said physician recruitment for the center is already underway. McKinney said the organization hired more than 400 physicians in the Sacramento area last year and continues to invest in graduate medical education to address shortages and retention.

According to McKinney, Sutter expects to have nearly 200 residents and fellows training at its Roseville campus by 2027 or 2028. “We’re creating local pathways to keep homegrown talent in the region,” she said.

Sutter Medical Group CEO Dr. Michael Conroy noted that the group maintains a physician turnover rate under 5%, which he said is below the national average. He credited the system’s investments in training, facilities and workforce culture.

“This expansion represents a significant step forward in our commitment to meeting the evolving health care needs of this growing community,” Conroy said in a statement. “Along with the surgery center, lab, imaging and other ancillary services, we are creating a true ‘one-stop-shop’ for comprehensive health care needs.”

Sutter first announced the project in 2024, and the Elk Grove Planning Commission approved it in October of that year. At the time, the organization simultaneously requested to rescind earlier approvals for a full hospital master plan on the site, opting instead to pursue a strategy focused on outpatient care.

Link to full article.

Issues:Health Care