Sanford's $200M Sioux Falls Campus Nears First Phase Completion

Sanford Health's Evangelical Lutheran Good Samaritan Society subsidiary is executing an ambitious phased development that breaks ground on a fundamental shift in how seniors access healthcare in South Dakota. The project, located on 60 acres northeast of 57th Street and Veterans Parkway in southeast Sioux Falls, will eventually encompass independent living apartments and villas, assisted living, memory care services, short-term rehabilitation, long-term care, and integrated medical services—all designed to eliminate the need for residents to leave campus for routine care.

The first phase, opening in early 2026, delivers approximately 40 villas alongside a four-story multifamily building containing 120 independent living apartments, 32 assisted living units, and 32 memory care apartments. The complex will feature walking trails, ponds, a theater, spa services, and a golf simulator. But the centerpiece is connectivity: residents will access primary care, lab work, ultrasound, radiology, and pharmacy services through an on-site Sanford Health clinic and Lewis Drug, with the clinic and pharmacy also open to the broader east-side community.

The development's second phase, targeted for completion between 2026 and 2028, will add a short-term rehabilitation and long-term care center, additional villas, and expanded clinic and pharmacy facilities on the remaining 30 acres. This phased approach allows Sanford to monitor market response and operational performance before committing resources to later phases. The strategy reflects cautious optimism about senior living demand in Sioux Falls, even as Good Samaritan Society navigates a broader industry shift away from traditional nursing home models.

The $200 million investment underscores Sanford Health's commitment to vertical integration across its service lines in South Dakota's largest metropolitan area. By embedding primary care and specialty services within the senior living community, Sanford reduces fragmentation and creates efficiency gains that benefit both residents and the health system. For Sioux Falls residents aging in place, Founder's Crossing represents a new model: comprehensive care without geographic displacement.