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Texas to See $1B Investment in Hospital Construction

Mon February 21, 2022 - West Edition #5
Medical Finance News

(St. David's HealthCare photo)
(St. David's HealthCare photo)

David Huffstutler, president and CEO of St. David's HealthCare, said that even before the pandemic, there was a need for more physical capacity and additional services in the system's existing hospitals. And as the area continues to boom, the need for health care grows too.

"As the population growth in central Texas continues to expand into outlying areas, this has created the need for us to establish additional sites of care in those areas," Huffstutler said. "These needs will only increase in the future with the ongoing, rapid growth of central Texas. As a result, we are initiating plans to build two new hospitals, embarking on the construction of a new behavioral health hospital, as well as plans for multiple expansion and renovation projects to ensure we can continue our mission to provide exceptional care to every patient every day."

St. David's HealthCare said it has already invested more than $2.5 billion over the past 25 years to expand and develop its facilities. This new $953 million investment will include:

  • $142.5 million for a new full-service, acute care hospital in Leander;
  • $185 million for a new full-service, acute care hospital in the Kyle area;
  • $33.8 million for a new 80-bed behavioral health hospital near St. David's North Austin Medical Center;
  • $145.9 million for renovation and expansion at St. David's North Austin Medical Center;
  • $249 million for renovation and expansion at St. David's South Austin Medical Center;
  • $53.1 million for expansion at St. David's Round Rock Medical Center;
  • $43 million for renovation and expansion at St. David's Medical Center;
  • $20.9 million for expansion at Heart Hospital of Austin;
  • $80 million for construction of future capacity at local hospitals.

St. David's said it will soon begin the third phase of its plan for a medical complex on San Gabriel Parkway in Leander. The first two phases of development included the construction of a freestanding emergency center and a medical office building, both of which are currently open. The third phase includes a $142.5 million investment for a full-service hospital.


Meanwhile, St. David's is also in the process of acquiring land in the Kyle area to build a full-service acute care hospital. The 160,000-sq.-ft. facility will include 34 beds with room for growth and will offer the same services as the Leander hospital.

The Kyle hospital is expected to open in 2024, creating about 200 new full-time jobs.


Additionally, St. David's is investing $33.8 million to build an 80-bed behavioral health hospital, with space to add an additional dozen beds in the future. The hospital will be located near St. David's North Austin Medical Center and will provide mental health services for adolescent, adult and senior patients.

The 63,000-sq.-ft. facility will include indoor and outdoor therapy areas, a separate adolescent area and outpatient services. It is expected to open in 2024 and will be designed for future expansion as needs grow, according to St. David's. The hospital's opening is set to create more than 200 jobs.

St. David's North Austin Medical Center

This facility is undergoing a $145.9 million renovation and expansion that includes the St. David's Women's Center of Texas and the hospital's main tower.

St. David's said the expansion of the Women's Center of Texas will be completed in two phases. The first will include the renovation of 28,325 square feet that will add 30 neonatal intensive care unit (NICU) beds. The second phase will add three additional floors and include a 166,369-square-foot expansion, including four C-section operating rooms, 36 labor and delivery beds, 24 antepartum beds and 32 full-time nursery beds.

St. David's South Austin Medical Center

St. David's is currently completing an $81 million expansion at its South Austin Medical Center. The expansion includes a buildout of the seventh floor medical/surgical space, a women's services unit and a new parking garage.

Construction has been completed on the medical/surgical space and the parking garage, adding 34 more patient beds and 700 more parking spots.

St. David's Round Rock Medical Center

St. David's is investing $53.1 million in a capital expansion project at the Round Rock Medical Center, including the operating room and patient care room facility. The project will begin this year and will include two additional floors featuring a 34-bed patient care unit, four additional operating rooms and support spaces.

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