June 10, 2026

A new building focused on dermatology and plastic surgery will be coming to the campus of Sanford USD Medical Center in central Sioux Falls.

Work starts this month on the new two-story, 52,000-square-foot Medical Building 4, which will be located on the northeast corner of 21st Street and Grange Avenue, directly east of Medical Building 1.

“That will allow us to grow and expand on campus,” said Andy Munce, president and CEO of Sanford Health in Sioux Falls. “So we can provide all those tertiary services right on the campus and not have to worry about patients traveling across town or to other locations.”

Sanford Dermatology Clinic currently is located inside the Talley Building on the Sanford campus, while Sanford Plastic and Reconstructive Surgery is locate inside Medical Building 3.

The USD School of Medicine’s M.D. program is moving to the Talley Building, which is adjacent to the current USD School of Medicine Building.

Dermatology is a “high demand” service area,” Sanford Sioux Falls COO Eric Hilmoe said.

“We have some additional recruits we recently signed who will be joining in the next few years … and they will come into this brand-new clinic and hit the ground running.”

There are 11 physicians currently with two more joining in the next two years. The new clinic can accommodate up to 16.

The new MB4 will include 46 exam rooms, 15 treatment rooms, four procedure rooms, two infection rooms, a lab and a laser room.

The second floor will include some shelled space for future clinical expansion.

“Plastic surgery has seen interesting growth in the last couple years — we’ve seen that demand,” Munce said. “And they’re involved in a lot of our ER trauma volume. They get consulted for wounds and injuries and surgical procedures, so it does make sense to have them on our campus.”

There are four plastic surgeons at Sanford, and the new clinic can accommodate up to six.

Medical Building 4 is scheduled to be completed by the end of 2027, allowing teams to relocate out of the Talley Building and have it renovated in time for USD to start classes in July 2028.

“It was something we needed to do regardless, and with the school moving it accelerates some of those timelines,” Munce said. “It makes it a pretty complex process with the puzzle pieces … but to have students be engrained in the medical community from day one and not be driving back and forth between Vermillion and Sioux Falls is a huge win for the community of Sioux Falls.”

Architecture Incorporated is the architect on MB4 and Fiegen Construction is the general contractor.

The building will be constructed on land that currently is a parking lot, and the city of Sioux Falls allowed for 21st Street between Grange and Menlo avenues to be vacated.

The parking spaces lost will be replaced during construction.

The building activity continues “a pretty busy and exciting year” for the campus, Munce said. Sanford Orthopedic Hospital began seeing patients earlier this year, while construction continues to renovate 44,000 square feet in the existing surgical tower, including modernizing and expanding the front entry.

“It will be another year before that’s done, so it will really tie together, so we’re still in the growing phase but overall it’s going really well,” Munce said.

The Highpoint Hotel within the hospital has “been really embraced by the community,” he added. “It’s hitting the demographics and patients we targeted when we built it.”

The vast majority of guests at the hotel are staying before or after procedures or are families with relatives — especially children — at the hospital.

“We’re still growing into it, but it’s definitely starting to fill up,” Munce said.