University Health is expanding medical access in Bexar County with the construction of two new hospitals: the Retama Hospital on the Northeast Side, scheduled to open in February 2027, and the Palo Alto Hospital on the South Side, slated for April 2027. According to University Health spokesperson Elizabeth Allen, these facilities aim to eliminate “healthcare deserts” and reduce the burden on the central Medical Center.
Expanding Bed Capacity Through Budget Savings
University Health is utilizing $90 million—consisting of $60 million in project under-budget savings and $30 million from reserves—to increase inpatient capacity before the hospitals open. This funding allows both sites to expand their initial scope to better handle local patient volumes.
The Retama Campus will now include 20 additional inpatient rooms, bringing its total to 167 beds at opening. The Palo Alto facility will add 60 more rooms, resulting in a total of 227 beds. Elizabeth Allen stated that this expansion is designed to free up beds at the main University Hospital and the Medical Center for more complex and challenging cases.
Addressing Healthcare Deserts on the South and Northeast Sides
The placement of these hospitals responds to rapid population growth and a lack of existing infrastructure. Elizabeth Allen noted that the South Side has long been a “healthcare desert,” a situation worsened by the loss of an important local hospital in recent years.
On the Northeast Side, the growth is driven by new housing developments. Gilbert Diaz Sr., a Live Oak resident, described the area as “exploding” with new people. For patients like Diaz, who faced a liver cancer diagnosis in November, the distance to the Medical Center presented a significant hurdle. His daughter, Erika Valderrama, highlighted that local access is critical for elderly patients who lack reliable transportation.
Comparison of New Facility Capacities
| Facility | Opening Date | Total Beds | Location |
|---|---|---|---|
| Retama Hospital | February 2027 | 167 | Northeast Side |
| Palo Alto Hospital | April 2027 | 227 | South Side |
Immediate Relief via Primary Care Clinics
While the full hospitals are under construction, University Health has already launched primary care clinics to address immediate needs. The Wheatley Health Center now operates next to the future Retama Hospital, and the Por Vida Clinic has opened beside the Palo Alto site.
According to Elizabeth Allen, both clinics are already “swamped.” This high initial volume serves as evidence of the existing demand for medical services in these specific corridors of San Antonio.
FAQ: University Health Expansion
When will the new Northeast Side hospital open?
The Retama Hospital is scheduled to be finished in February 2027, according to University Health.
How many beds will the Palo Alto Hospital have?
With the addition of 60 extra rooms funded by budget savings, the Palo Alto Hospital will have a total of 227 beds.
Why is University Health building in these specific areas?
The Northeast Side is seeing rapid residential growth, and the South Side has been identified as a healthcare desert, particularly after the loss of a previous local hospital.
Are there medical services available now?
Yes. The Wheatley Health Center (Northeast) and Por Vida Clinic (South Side) are currently open for primary care.
What happens to the main Medical Center facilities?
By shifting routine and inpatient care to the new neighborhood hospitals, University Health intends to free up beds at the main facility for more challenging and serious medical cases.
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