San Antonio, January 27, 2026
University Health in San Antonio has secured a $50 million deal to acquire two medical towers from Christus Health. This strategic acquisition, aimed at enhancing outpatient services, will allow University Health to effectively consolidate its facilities and provide comprehensive healthcare solutions, reducing wait times and operational costs. The deal is set to close in February 2026 and is part of a larger $1.5 billion expansion program to improve healthcare access in the region.
San Antonio, Texas
University Health Acquires Two Medical Towers in the Medical Center Area for $50 Million
San Antonio’s University Health has finalized a $50 million acquisition of two medical towers within the South Texas Medical Center, previously part of Christus Health’s former Santa Rosa campus. This strategic move aims to enhance outpatient services and integrate facilities more effectively.
Details of the Acquisition
The Bexar County Hospital District board approved the purchase, which includes two medical towers located at 2829 and 2833 Babcock Road. University Health had previously leased space within these towers, housing services such as the Allergy and Asthma Clinic. The acquisition allows for the consolidation of outpatient services, addressing space constraints at the main hospital and reducing reliance on external leases. The deal is set to close on February 23, 2026, with plans to relocate the Women’s Cardiology Clinic, University Medicine Associates, and employed physician practices into the available spaces. The towers, constructed in 1986 and 1992, underwent $5.2 million in renovations between 2018 and 2020. Approximately 89% of the 200,000 square feet is currently occupied by medical tenants, with the remainder vacant. The integration of these facilities is expected to streamline operations and improve patient care by reducing wait times and offering comprehensive services in a single location. This acquisition is part of University Health’s broader $1.5 billion expansion program, which includes the construction of two new hospitals on the South and Northeast sides of San Antonio, scheduled to open in early 2027. Additionally, a $20 million renovation of the former Santa Rosa hospital is underway, with plans to reopen it as Babcock Specialty Hospital by the end of the year. These initiatives reflect University Health’s commitment to expanding access to quality healthcare services across the region.
Background Context
In October 2025, University Health acquired Christus Health’s former Santa Rosa hospital for $71 million, marking a significant step in its expansion efforts. The recent purchase of the two medical towers further solidifies University Health’s presence in the Medical Center area, enabling better integration of outpatient services and reducing operational costs associated with external leases. The strategic expansion aims to provide comprehensive healthcare services closer to home for Bexar County residents, addressing the growing demand for accessible medical care in the region. The development of new facilities and the renovation of existing ones underscore University Health’s dedication to enhancing healthcare infrastructure and improving patient outcomes in San Antonio.
Frequently Asked Questions (FAQ)
What is the total cost of University Health’s acquisition of the two medical towers?
The total cost of University Health’s acquisition of the two medical towers is $50 million.
When is the acquisition deal set to close?
The acquisition deal is set to close on February 23, 2026.
What are the plans for the vacant spaces in the medical towers?
University Health plans to relocate the Women’s Cardiology Clinic, University Medicine Associates, and employed physician practices into the vacant spaces within the medical towers.
What is the size and occupancy rate of the medical towers?
The medical towers encompass 200,000 square feet, with approximately 89% occupied by medical tenants and the remaining space vacant.
What is the significance of this acquisition for University Health?
This acquisition allows University Health to consolidate outpatient services, reduce operational costs associated with external leases, and improve patient care by integrating facilities more effectively.
Key Features of the Acquisition
| Feature | Details |
|---|---|
| Total Acquisition Cost | $50 million |
| Closing Date | February 23, 2026 |
| Planned Relocations | Women’s Cardiology Clinic, University Medicine Associates, and employed physician practices |
| Tower Size | 200,000 square feet |
| Occupancy Rate | 89% occupied by medical tenants |
| Renovation History | $5.2 million in renovations between 2018 and 2020 |
| Integration Plans | Consolidation of outpatient services to improve patient care and reduce operational costs |
| Broader Expansion Program | $1.5 billion expansion, including two new hospitals opening in early 2027 |
| Former Santa Rosa Hospital Renovation | $20 million renovation underway, reopening as Babcock Specialty Hospital by end of the year |
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The SAN ANTONIO STAFF WRITER represents the experienced team at HERESanAntonio.com, your go-to source for actionable local news and information in San Antonio, Bexar County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Fiesta San Antonio, San Antonio Stock Show & Rodeo, and Dia de los Muertos. Our coverage extends to key organizations like the Greater San Antonio Chamber of Commerce and United Way of San Antonio and Bexar County, plus leading businesses in retail, insurance, and energy that power the local economy such as H-E-B, USAA, and Valero Energy. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREDallas.com, and HEREHouston.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
