San Antonio, January 10, 2026
University Health has announced a $1.5 billion expansion project aimed at improving healthcare access in San Antonio by constructing new hospitals and health centers by 2027. The project will include two hospitals and several health centers in underserved areas, enhancing medical services for residents in need. This initiative is part of the largest capital improvement program in University Health’s history, reflecting the commitment to serve the growing community.
San Antonio, Texas
University Health has announced a comprehensive timeline for its $1.5 billion expansion project, aiming to enhance healthcare access across San Antonio by 2027.
Project Overview
The expansion includes the construction of two new hospitals and several health centers in underserved areas. The total estimated project cost is $1.5 billion, with funding sourced from bond issues and cash reserves. The facilities are expected to open by early 2027, with minimal impact on the operating budget until their completion.
Details of the New Facilities
- Palo Alto Hospital: Located on a 68-acre campus adjacent to Texas A&M University-San Antonio, this five-story hospital will initially offer 166 inpatient beds, expandable to 286. It will feature a 24/7 emergency department, labor and delivery units, a neonatal intensive care unit (NICU), operating rooms, and radiology and laboratory services. A medical office building will provide outpatient clinics and specialty care services. The hospital is scheduled to open in 2027.
- Retama Hospital: Situated in Selma, Texas, along the I-35 corridor north of Loop 1604, this four-story facility will have 140 inpatient beds, with the capacity to expand to 286. It will offer a 24/7 emergency department, labor and delivery unit, NICU, operating rooms, radiology, lab, pharmacy services, and inpatient units for medical and surgical care. An adjoining medical office building will house outpatient services, including family medicine and various specialties. The hospital is slated to open in 2027.
- University Health Vida: A three-story, 60,000-square-foot multi-specialty health center and headquarters for the University Health Institute for Public Health, located on the South Side. Scheduled to open in 2026, Vida will offer primary care, mental health services, women’s health, and preventive care, focusing on social determinants of health.
- University Health Wheatley: A single-story, 15,000-square-foot clinic on the East Side, providing primary care, specialty care, and an urgent care clinic, along with pharmacy, laboratory, and radiology services. This facility aims to enhance healthcare accessibility for East Side residents and is expected to open in early 2026.
Funding and Financial Strategy
To finance these projects, University Health secured $300 million in bond funding in September 2022 and $200 million in August 2023. Combined with $620 million in cash reserves, the project fund currently stands at $1.1 billion. Additional cash reserves will be allocated over the next few years during the construction phase.
Background Context
This expansion is part of University Health’s largest capital improvement program in its over 100-year history, aiming to bring comprehensive healthcare services closer to residents in rapidly growing and historically underserved areas of San Antonio. The project addresses the need for increased access to medical services, particularly in communities with limited healthcare facilities.
Key Features of the Expansion Project
| Facility | Location | Opening Date | Initial Inpatient Beds | Expandable Beds | Key Services |
|---|---|---|---|---|---|
| Palo Alto Hospital | Adjacent to Texas A&M University-San Antonio, South Side | 2027 | 166 | 286 | Emergency department, labor and delivery units, NICU, operating rooms, radiology and laboratory services, outpatient clinics, specialty care services |
| Retama Hospital | Selma, Texas, along I-35 corridor north of Loop 1604 | 2027 | 140 | 286 | Emergency department, labor and delivery unit, NICU, operating rooms, radiology, lab, pharmacy services, inpatient units for medical and surgical care, outpatient services including family medicine and various specialties |
| University Health Vida | South Side, adjacent to Texas A&M University-San Antonio | 2026 | N/A | N/A | Primary care, mental health services, women’s health, preventive care, focusing on social determinants of health |
| University Health Wheatley | East Side, near Martin Luther King Park | Early 2026 | N/A | N/A | Primary care, specialty care, urgent care clinic, pharmacy, laboratory, and radiology services |
Frequently Asked Questions (FAQ)
What is the total cost of University Health’s expansion project?
The total estimated project cost is $1.5 billion.
When are the new facilities expected to open?
The facilities are expected to open by early 2027, with minimal impact on the operating budget until their completion.
How is the expansion project being funded?
University Health secured $300 million in bond funding in September 2022 and $200 million in August 2023. Combined with $620 million in cash reserves, the project fund currently stands at $1.1 billion. Additional cash reserves will be allocated over the next few years during the construction phase.
What services will the new facilities offer?
The new facilities will offer a range of services, including inpatient care, emergency departments, labor and delivery units, NICUs, operating rooms, radiology and laboratory services, outpatient clinics, specialty care, primary care, mental health services, women’s health, and preventive care.
How will the expansion impact healthcare access in San Antonio?
The expansion aims to enhance healthcare access by bringing comprehensive services closer to residents in rapidly growing and historically underserved areas of San Antonio, addressing the need for increased access to medical services in communities with limited healthcare facilities.
Deeper Dive: News & Info About This Topic
HERE Resources
Nutex Health Inc. Expands With New Headquarters in Houston
Xenex Disinfection Services Expands into Canada with Health Approval
RapidCare Emergency Room Expands to San Antonio, TX
Ed Banos Takes Charge as President and CEO of University Health
Texas Cities Shine as Top Job Destinations for Seekers
San Marcos Unveils Major Development Projects
San Antonio ISD Supports Families with Food Distribution
Southwest Airlines Announces New Crew Base in Austin
Texas Labor Force Hits Record High Despite Layoff Surge
Lineup Announced for San Antonio Stock Show & Rodeo
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.
