June 16, 2025

The first patients will be seen in early 2026 inside the new Sanford Orthopedic Hospital, which will open a boutique hotel inside at the same time.

The nine-story, 161,000-square-foot building on the Sanford USD Medical Center campus is attached to Sanford Children’s Hospital and accessible through the existing surgical tower.

Reaching 137 feet in the air, it’s the highest building on the campus and designed to position Sanford Health for growth in orthopedics while delivering enhancements that will benefit the broader campus.

“The main drivers are a way to continue to provide excellent care for our community,” said Andy Munce, who recently was named president and CEO of Sanford Health’s Sioux Falls region.

“It really ties well to our new mission, which is to care, comfort and cure.”

Sioux Falls “has seen rapid growth within orthopedics,” he added. “We’re fortunate to be a part of that.”

The building, which is designed by Chicago-based HKS and Sioux Falls-based Architecture Incorporated, is being built by Henry Carlson Construction.

It’s on track for the first patients to be seen Jan. 12, 2026.

“As we’ve seen across the world, a great majority of orthopedic procedures are outpatient, so this building is really designed with that in mind,” Munce aid.

Thirty-five rooms are designed to serve patients both before and after procedures, while expanding physical therapy nearby is designed to enhance recovery before discharge.

The building includes 12 operating rooms, including an intraoperative MRI attached directly to an OR so patients can receive screening during surgery.

“That provides significant advantages to really intricate or procedural work,” Munce said. “Say a brain tumor needs to be resected. Our neurosurgery group will heavily use this space. We do these procedures today, but we’re moving patients around campus. So instead of half a campus away, it’s 20 feet, and it’s second floor, which is a direct connection to our (children’s) castle, so when our castle children need an MRI, it’s a short distance that will be very convenient.”

There will be 30 orthopedic physicians and 34 advanced practice providers working out of the building when it opens.

“We’ve been very successful with recruitment,” Munce said. “By the time the building opens, we’ll have an additional neurosurgeon joining our team specifically working out of the intraoperative MRI space, so we’ll have five neurosurgeons come January, and it’s helped us grow all those areas.”

The building also includes the new 56,000-square-foot Highpoint Hotel, a boutique hotel with high-end finishes and amenities developed and operated by Sioux Falls-based Hegg Cos.

The name was chosen because it’s the highest elevation in the city, said Dione Deuel, chief operating officer of hospitality and director of brand experience at Hegg.

The lobby is on the fourth floor, which includes a fireplace, expanded gym “and amazing views of the city,” she said.

“Our philosophy is ‘holding space and being consciously present of others’ needs in each moment,'” she said. “Regardless of whether the moment is uplifting or challenging, we commit to being there. Our goal is to enhance every interaction to ensure our guests have the best possible experience.”

The 56 guest rooms are on floors six and seven, while the fifth floor eventually will be built out as 19 inpatient hospital rooms. There are 10 suites, eight ADA-accessible rooms and seven hearing-impaired rooms.

“We will offer a small breakfast buffet, and in the evening, the bar will be open with beer and wine service as well as a variety of small plate and appetizer offerings,” Deuel added.

The plan is to hire a general manager in late September, followed by the rest of the staff later this year.

The hotel expects to start accepting reservations in mid-October and open for the first guests on Jan. 12, 2026.

“Our hotels we have on campus are some of the highest-occupancy hotels in the area, and so we know there’s a need,” Munce said. “This will be super-convenient not only for surgical patients, but the direct connectivity to the castle or even the NICU adjacent to the space will really service that side of campus to a whole new level.”

Some patients arrive the night before for early procedures or will benefit from staying overnight in the hotel before heading home, he added.

The project also includes renovating 44,000 square feet in the existing surgical tower, including modernizing and expanding the front entry.

That space will be the last to get finished, with targeted completion in late 2026.

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