April 20, 2026

Avera Health has received a $35 million gift — the largest in the system’s history — to support pediatric care in Sioux Falls.

It’s from philanthropist and entrepreneur B. Thomas Golisano, founder of Paychex Inc., who has contributed more than $1 billion to philanthropic causes, including multiple children’s hospitals across the country that bear his name.

The contribution will support Avera’s Tomorrow’s Promise Campaign and construction of a children’s hospital within a patient care tower at Avera McKennan Hospital & University Health Center. In recognition of the gift, the facility will be named the Avera Golisano Children’s Hospital.

Golisano said his investment is aimed at improving access to care for children and families across the region.

“Children and families should not have to travel long distances to get the care they need,” he said in a statement. “My investment in the Avera Golisano Children’s Hospital is about more than a new building. It’s about giving kids access to outstanding care closer to home, supporting families and creating better outcomes for the future.”

The gift will help fund the six-story, $165 million patient care tower now under construction on the Avera McKennan campus. The project will add about 220,000 square feet of hospital space dedicated to birthing, newborn care and pediatrics and is expected to open in early 2027.

Avera president and CEO Jim Dover said the donation will significantly expand the system’s ability to care for children and families across its multistate footprint.

“Golisano’s investment reflects an enduring commitment to advancing the future of children’s health,” Dover said. “This gift will significantly expand capacity and enhance care delivery. Children from across our entire region will benefit from this gift for generations to come.”

According to Avera, the funding will support expanded behavioral health services for children and adolescents, additional specialists and more timely access to care. Plans also include enhanced family-centered spaces designed to allow families to remain close to loved ones during treatment and recovery.

The Sioux Falls-based program serves as a hub for pediatric care across the Avera system, said Dr. Ron Place, regional president and CEO of Avera McKennan Hospital & University Health Center.

“Our Avera McKennan children’s health program supports the entire Avera system through specialty and subspecialty pediatric care, along with telemedicine and virtual support to rural areas so families can remain close to home when possible,” he said.

The project is part of a broader $250 million strategic commitment by Avera to expand care for newborns, children and families.

With the gift, Avera also joins the Golisano Children’s Alliance, a national network of children’s hospitals focused on improving pediatric health care delivery, advancing innovation and expanding access to high-quality care.

Avera is the westernmost and most rural member of the alliance, marking a milestone for the network.

Golisano’s giving spans health care, education and other areas, and he founded the Golisano Foundation in 1985 to support people with intellectual and developmental disabilities.

In 2025, he launched the Golisano Children’s Alliance to bring together children’s hospitals across the United States to expand services, strengthen collaboration and improve access to care for families.

Professionally, Golisano founded Paychex, Inc., in 1971. It became the nation’s largest human resource company for small to medium-sized businesses, providing integrated human capital management solutions for payroll, benefits, human resources, and insurance services for more than 745,000 clients in the U.S. and Europe. Golisano retired as president and CEO in 2004 and served as board chairman until late 2021. Based in Rochester, New York,  Paychex has 16,000 employees and pays one in 12 U.S. private-sector employees.

Dzenan Berberovic, Avera’s chief development officer and foundation president, said the donation will accelerate efforts to expand programs, space and capabilities.

“This is a gift for every child and family we will serve for generations,” he said. “Children and families receive exceptional care today, and because of Golisano’s defining investment, we will expand spaces, programs and capabilities to transform lives.”

Avera serves a five-state region, and leaders said the new hospital will support systemwide growth through additional specialists and expanded services.

“The Avera Golisano Children’s Hospital will not only offer a welcoming front door for this care in Sioux Falls, but it also will support our entire system across five states through program growth, additional specialists and more timely services,” said Dr. Kathy Wang, a neonatologist and clinical vice president for the women’s and children’s service line.

“Generous philanthropic support, like that of Mr. Golisano, will help fulfill the promise of healthier futures for children and families across our region. We are grateful.”