California Northstate could break ground on new Sacramento hospital in 2026

California Northstate University’s planned $1 billion teaching hospital could break ground in North Natomas as early as next spring, university officials said Monday, with plans to open in 2029.

The spring 2026 earthmoving date would be the latest milestone for the Elk Grove-based medical school, whose College of Medicine received full accreditation in July. The Sacramento Business Journal first reported the story.

Today, university leaders say financing is nearing the finish line with the spring target in sight.

“This is a transformative investment in Sacramento’s future. We have nearly finalized our financing and are moving forward with confidence,” said California Northstate University president and CEO Dr. Alvin Cheung in prepared remarks. University officials said the funding mix is a blend of debt and equity with investors including “both U.S.-based and international sources.”

Depending on weather and what was described as “final agreements,” Cheung said California Northstate is “deep into the pre-development phase and tracking toward our spring 2026 groundbreaking.” A general contractor has been selected for the project and the state’s Department of Health Care Access and Information is reviewing structural designs.

The university in 2022 announced plans to build the 350-bed teaching hospital and health sciences campus on the site of the former Sleep Train Arena, the former home of the Sacramento Kings, vowing the privately funded project would be among the most technologically advanced medical centers in the country.

University leaders said the North Natomas site, close to high-population areas and Sacramento International Airport, made it a logical site for a medical campus. The hospital will train medical, nursing, pharmacy and dental professionals, but will operate independent of the university’s College of Medicine.

“Natomas offers unparalleled access to both local and regional populations. It is the right fit for our vision of an innovation-driven academic medical center,” said Dr. Richard Isaacs, the university’s dean, senior vice president of medical affairs and chief academic officer.

University officials project up to $5.5 billion in annual economic impact and up to 3,000 jobs once the hospital campus is operational.

Darrell Smith

The Sacramento Bee

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Darrell Smith is a local reporter for The Sacramento Bee. He joined The Bee in 2006 and previously worked at newspapers in Palm Springs, Colorado Springs and Marysville. Smith was born and raised at Beale Air Force Base and lives in Elk Grove.