Avera Health plans to expand two of its Sioux Falls campuses for approximately $245 million.
This will be the largest expansion of hospital patient care space in Sioux Falls history at 350,000 square feet, according to the health system.
The planned six- and three-story buildings are intended to expand capacity and access for South Dakota’s two specialty areas: gastrointestinal health services and pregnancy and delivery services.

Avera spokesperson Cale Ferrer told South Dakota Searchlight that the health care systems are “often very well-equipped.” The system serves approximately 42,000 inpatients each year, and an additional 1.1 million patients are served outside the hospital. Avera McKennan Hospital in Sioux Falls serves patients within a 300-mile radius of the city.
The construction project will reduce strain and demand on the Avera system, which includes 300 locations throughout South Dakota, Minnesota, Iowa, Nebraska and North Dakota, said Avera President and CEO. Jim Dover said in a press release.
He said these projects “lay the foundation for the quality of care that we can provide as an interconnected system.”
“Years of planning and research have gone into evidence-based care for the people we serve, and we are confident this project will benefit patients for generations to come.” he said.
Services for women and children
South Dakota’s preterm birth rate is has increased over the past 10 years, It increased from 7.9% of births in 2011 to 9.4% in 2020. According to the South Dakota Department of Health. Pregnancy Risk Assessment Monitoring System 2021 Report — Latest information available — 10.1% of mothers surveyed gave birth prematurely, which increases the risk of sudden infant death syndrome and long-term health problems.
According to the survey, more than 25% of infants had to stay in the hospital for more than two days. Also, the percentage of women who reported gestational diabetes during pregnancy was 14.9%.

The six-story building will add 158 beds for women’s and children’s hospital services to Avera’s McKennan Hospital campus in Sioux Falls, give the hospital a new main entrance and replace existing facilities, according to a news release. There are plans to expand the department. The tower will be dedicated to labor and delivery, postnatal care, neonatal nursery, neonatal intensive care unit, children’s hospital care, and pediatric intensive care.
Many counties, particularly in western South Dakota, are considered maternal health deserts, meaning there are no hospitals or midwifery clinics within the county that provide obstetric care. Native American South Dakotans are most likely to live in such areas. According to South Dakota Public BroadcastingAvera researchers seek to understand barriers to maternal health among Native Americans.
From 2012 to 2021, American Indians accounted for 20% of all births but 44% of all pregnancy-related deaths.
“That’s a crisis level,” Amy Elliott, chief research officer at Abella McKennon, told SDPB. “There’s a shortage of obstetricians, especially in the western part of the state. Do we need to not only hire more people, but also think a little differently about how we provide care?”
Abella did not immediately respond to questions about plans to address maternal care needs outside the Sioux Falls area.
Digestive health services
Gastrointestinal medical services, or gastroenterology, cover everything related to the gastrointestinal tract, including gallbladder disease, pancreatic cancer, and colon cancer.
Pancreatic cancer diagnoses are on the rise in South Dakota, increasing from 2.2 cases per 100,000 people in 2002 to 13.2 cases per 100,000 people in 2020. According to the National Cancer Institute — along with liver cancer (3.5 to 7.2 over the same period). The number of gastric and colon cancer diagnoses is on the decline.
This three-story building project will expand gastroenterology services at the Louise Health Campus, with increasing capacity and access needs.

Gastroenterology services are currently located at Abela Specialist Hospital and its attached medical building. The space vacated by gastrointestinal medical services within Avella Specialty Hospital will be used for orthopedic services.
Construction on these projects is expected to begin this summer, with the Louise project scheduled for completion in 2026 and the main hospital campus project scheduled for completion in 2027.
The health system also plans to renovate other locations in Sioux Falls. The South Dakota Department of Health, Education and Facilities will be considering the following plans: Financing up to $465 million in bonds Projects and Refinance Projects with Avera Health. at Thursday’s meeting.
Avera plans to relocate the hospital’s oncology department to the fifth floor of Prairie Center on its main campus. The move is a “domino effect” of two major projects, Ferrer said.
Avera also plans to build clinic space to house the clinic’s specialty care providers at Doley Farm in southeast Sioux Falls, as well as a new 18-bed unit for patients. Avera St. Luke’s Hospital In Aberdeen.
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