California Northstate University Negotiates for $1.2 Billion Health Facility

RANCHO CORDOVA, CA (MPG) – Officials from the City of Rancho Cordova, Sacramento Region Business Association and California Northstate University (CNU) announced the broad framework of an agreement that, if finalized, could bring a teaching hospital to the City of Rancho Cordova. The valuation of the project at full build out could potentially reach $1.2 billion dollars.

If completed, the agreement could locate the teaching hospital in Rancho Cordova at a location capable of accommodating the hospital project and its growth. Officials are engaging in discussions that will determine precise location, scale and future partnership. Details will be announced as they are finalized.

“Building a hospital in Rancho Cordova has long been a desire of the City Council, and we are excited to be exploring that possibility with California Northstate University,” said Rancho Cordova Mayor Garrett Gatewood.

“We are gratified that a number of jurisdictions reached out to CNU representatives, recognizing the stature of the proposed teaching hospital for our region,” said Dr. Alvin Cheung, President and CEO of CNU. “It is equally gratifying to feel included in the community and in the process.”

This marks the beginning of a thoughtful and transparent process that will include identification of an appropriate location, a study of the potential environmental impacts and proposed remedies, community engagement, design/review and finalizing the term sheet that could bring a much-desired community asset—with thousands of high-paying jobs and substantial economic benefit and tax revenue—to the City of Rancho Cordova and nearby communities.

Diann Rogers, President and CEO of the Rancho Cordova Chamber of Commerce, commented, “The opportunities that could be provided to the City of Rancho Cordova, its residents, and the businesses around the proposed CNU Medical Center are very exciting.”

“Region Business supports the proposed CNU Medical Center in the City of Rancho Cordova. We believe that it will provide thousands of high wage jobs, improve public health, and provide key educational opportunities for medical professionals for decades to come,” said Lisa Nicolls, Region Business Board President.  

"We congratulate and support negotiations between the City of Rancho Cordova and California Northstate University. We also can’t overstate the leadership that the City of Rancho Cordova has shown in pursuing this great economic generator that could truly transform and elevate the City of Rancho Cordova. We look forward to seeing this project come to fruition and act as a catalyst for further regional growth and innovation," Nicolls continued. 

“We’re very pleased to be partnering with California Northstate University and working on the details of an agreement to bring a hospital to Rancho Cordova,” said Cyrus Abhar, City Manager.

World-class teaching hospitals bring a significant amount of economic impact to the city. In Rochester, Minnesota, for example, over 70-percent of hotel room nights are driven by The Mayo Clinic. In pre-pandemic times, people travel from all over the world for care at The Mayo Clinic and other top-tier medical institutions.

RCTT’s Executive Director, Marc Sapoznik, said, “Bringing a teaching hospital to Rancho Cordova would represent a major milestone in our continuing development as a dynamic and diverse economic center… provid[ing] vital healthcare services to our community while creating good jobs, attracting top medical professionals to the area… making Rancho Cordova an even more attractive destination… [and] positively impact[ing] stays at city hotels.”

Officials from both sides emphasized that the process is in its initial stages and pledged to release details as they are finalized. Until such time, no interviews will be granted.

California Northstate University (CNU) is an institution of higher education dedicated to advancing the art and science of healthcare and to educating, training, and developing individuals to provide competent, patient-centered care. The University consists of five colleges: the College of Pharmacy, the College of Medicine, the College of Psychology, the College of Graduate Studies, and the College of Health Sciences. The College of Pharmacy, the College of Medicine, and the College of Psychology offer a Pharm D degree, an MD, and a PsyD degree respectively, whereas the College of Health Sciences offers a B.S. degree in Health Sciences.

Mission: The Mission of California Northstate University is to advance the art and science of healthcare. Vision: To provide innovative education and healthcare delivery systems.  

Sources: City of Rancho Cordova; Sacramento Region Business Association