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In The News

Kaiser Permanente Plans to Build Hospital at Sacramento Railyards

Kaiser Permanente, a leader in advancing the total health of its members and communities, today presented details of a plan to build a hospital in the Sacramento Railyards, anchoring development in an area described by city officials as key to the revitalization of downtown Sacramento.

The integrated health care leader has entered into a purchase and sale agreement for approximately 18 acres located north of Railyards Boulevard and west of 5th Street. Kaiser Permanente intends to build a state-of-the-art medical center on the site. It has begun a due diligence and entitlement phase for the property, a process that is expected to take up to two years. Kaiser Permanente entered the agreement with Downtown Railyard Venture LLC.

“As Kaiser Permanente celebrates 70 years of providing high-quality, affordable health care this summer, I am reminded of how deep our roots are in Sacramento,” said Gregory A. Adams, group president and regional president of Kaiser Foundation Hospitals and Health Plan, Inc., in Northern California. “We’re very proud to have been part of the Sacramento community for 50 of those 70 years, and this hospital demonstrates our commitment to this community in the years to come.”

The new Kaiser Permanente Medical Center at the Railyards will replace the current hospital located less than 10 miles away at 2025 Morse Ave. in Sacramento. The Morse Avenue location meets state seismic standards through 2030 and would need to be rebuilt to continue providing inpatient services. Kaiser Permanente will be evaluating and considering alternative options for the facility at Morse Avenue. Any change in service isn’t likely to occur for another seven to 10 years, coinciding with the timeline for the opening of the new hospital at the Railyards.

This is the second major investment Kaiser Permanente has announced in downtown Sacramento. In December 2014, Kaiser Permanente also purchased a six-story, 195,000-square-foot building at 501 J St., which will be used for a future medical office building.

“Bringing our services to downtown allows us to improve geographic access for many of our more than 740,000 Greater Sacramento-area members,” said Adams. “One of the major reasons we chose this site is because of its central location and proximity to Interstate 5, light rail and the Capitol Corridor.”

“As a national leader in providing superior quality medical care, we are thrilled about this opportunity to strengthen our clinical presence in the Sacramento Valley,” said Robert Pearl, MD, executive director and CEO of The Permanente Medical Group. “With over 8,000 physicians in Northern California we provide the most advanced and sophisticated medical and surgical procedures available today. This state-of-the-art hospital will allow us to help our patients live healthy, active lives.”

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