San Antonio, Texas, January 30, 2026
University Health in San Antonio has announced a significant $50 million acquisition of two medical office towers in the South Texas Medical Center. This strategic move aims to enhance healthcare accessibility and streamline operations by consolidating outpatient services. The acquisition follows the recent purchase of the former Santa Rosa hospital and aligns with University Health’s broader expansion plans, which include two new hospitals set to open in the coming years.
San Antonio, Texas
University Health Expands with $50 Million Acquisition of Medical Towers
A strategic move to enhance healthcare accessibility in San Antonio.
San Antonio’s University Health has fortified its foothold in the region’s healthcare landscape through a significant $50 million acquisition of two medical office towers in the South Texas Medical Center. This strategic decision follows the purchase of the former Santa Rosa hospital and exemplifies the commitment to improving outpatient services while minimizing operational costs associated with leasing external spaces. By consolidating services and enhancing facility integration, University Health aims to streamline operations and provide better patient care.
Village and community leaders will likely welcome this expanded access to healthcare services. As Bexar County continues to grow, initiatives like these will not only cater to existing patients but also anticipate the future demand for convenient healthcare solutions in the area, showcasing the potential of public-private partnerships in enhancing regional economic growth and health outcomes.
Details of the Acquisition
The Bexar County Hospital District board has formally approved the acquisition of the two medical office towers, located at 2829 and 2833 Babcock Road. Previously leased to University Health, these facilities currently house essential services such as the Allergy and Asthma Clinic. This acquisition facilitates a consolidation of outpatient offerings, effectively addressing the increasing space constraints at the main hospital and optimizing operational efficiencies.
Expected to close by February 23, 2026, the plan entails relocating the Women’s Cardiology Clinic, University Medicine Associates, and several employed physician practices into these newly integrated facilities. Built in 1986 and 1992, the towers have seen approximately $5.2 million in renovations between 2018 and 2020, ensuring modern amenities in a substantial 200,000 square feet of total space. Importantly, 89% of this space is already occupied by medical tenants, indicating a robust demand for such services in the area.
Background Context
The recent purchase follows a larger move by University Health, which acquired the former Santa Rosa hospital for $71 million in October 2025. This purchase of the medical towers further asserts University Health’s commitment to enhancing its presence within the Medical Center area, effectively integrating outpatient services while lowering operational costs linked to external leasing agreements. These proactive steps reflect a comprehensive strategy to provide accessible healthcare options for Bexar County residents.
The expansion efforts align with a broader framework of a $1.5 billion expansion program, which includes the construction of two new hospitals designed to open in early 2027. Alongside these efforts, a $20 million renovation of the former Santa Rosa facility is in progress, set to reopen as the Babcock Specialty Hospital by year-end. Each step taken signifies a crucial, forward-thinking approach aimed at bolstering healthcare accessibility and improving overall patient outcomes.
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 |
Deeper Dive: News & Info About This Topic
HERE Resources
Texas Leads Nation in Population Growth
Move and Care Expands Local Moving Services in San Antonio
University Health Acquires Two Medical Towers for $50 Million
San Antonio’s Culinary Scene Expands with New Venues
Governor Greg Abbott Requests H-1B Visa Data from State Schools and Universities
Winter Weather Causes School Closures in San Antonio
Bexar County Evaluates $200 Million Investment at Brooks
Texas Morning Briefing: Key Updates for January 21
San Antonio’s Upcoming Developments and Leadership Changes
San Antonio Police Chief Announces Retirement and New Developments
Author: STAFF HERE SAN ANTONIO WRITER
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.
