Sutter Health is investing $1B to expand its services across the East Bay, the San Francisco Chronicle reported.

The plan for the regional expansion includes building a new flagship campus at a 12-acre site in two existing buildings at Horton and 53rd streets in Emeryville. The new campus will include a 335K SF medical center with an initial capacity of up to 200 beds, 530K SF of outpatient services and an acute care services center.

“To truly meet the needs of our neighbors and deliver more services to our patients, we’re making meaningful investments in all of our communities,” Sutter Greater East Bay Division President Tosan Boyo said in a press release. “By adding new facilities and services, we’re making it easier for patients to access Sutter’s high-caliber care from our Sutter medical group physician partners.”

Warner Thomas, president and CEO of Sutter Health, highlighted the widespread issue of limited healthcare access in a news release and said Sutter Health is committed to improving patient access through a multipronged approach, including expanding care locations and increasing the number of physicians available.

“These efforts will allow us to care for more patients while also investing in programs and partnerships that build the healthcare workforce of the future — ensuring more people get the right care when and where they need it,” Thomas said.

The opening for the medical center is anticipated to be in 2032 or 2033, while the initial ambulatory patients will be treated as early as 2028. When the project is complete, an acute care services center at 2450 Ashby Ave. in Berkeley will be transformed for other uses, such as an ambulatory surgery center and urgent care clinic.

CBRE’s 2025 U.S. Healthcare Real Estate Outlook pointed to an increase in demand for healthcare services due to the aging U.S. population, particularly baby boomers.

By 2030, the entire baby boomer generation will be at retirement age, representing 20% of the population and contributing to a 31% increase in outpatient healthcare spending.

This demographic, which already accounts for a disproportionate share of healthcare spending, is expected to further drive demand, requiring even more healthcare infrastructure, staffing and resources to meet its needs, the report says.