Sanford Health and Lewis Drug Break Ground on Southeast Sioux Falls Clinic

Construction is officially underway on a nearly 30,000-square-foot combined medical clinic and retail pharmacy in southeast Sioux Falls, bringing a healthcare expansion to the city’s rapidly growing eastern edge. Sanford Health and Lewis Drug broke ground earlier this month on the multi-use facility, which is slated to open its doors to patients in August 2028.

A Strategic Rooftop Hub for Southeast Sioux Falls

The new Sanford 57th & Veterans Parkway Clinic sits within the Founder’s Crossing development from the Good Samaritan Society, an organization operating as part of Sanford Health. As residential growth pushes further toward the city’s perimeter, healthcare providers are racing to match the shift.

This project is designed to act as a regional anchor. Andy Munce, president and CEO of Sanford Sioux Falls, noted that while the layout shares similarities with the health system’s existing development at Madison Street and Veterans Parkway, this new site includes notable diagnostic upgrades.

Sanford breaks ground on new clinic, Lewis Drug

This will have acute care and service areas, as well as advanced imaging. Most clinics will have X-ray, and we’ll have CT and ultrasound services to help the diagnostic capabilities of the clinic and acute care, said Andy Munce. Andy Munce

The facility will feature 34 exam rooms, five treatment rooms, radiology, therapy, and walk-in lab services. Medical offerings will span acute care, family medicine, pediatrics, and obstetrics and gynecology. By embedding acute care directly into the southeast corridor, health system leaders aim to relieve patient volume pressure at the next closest facility located at 26th Street and Sycamore Avenue.

Integrating Pharmacy and Long-Term Care

Beyond traditional outpatient services, the property features an attached Lewis Drug store complete with a pharmacy and a dedicated Sanford Health Equip location inside. Lewis Drug officially became a business unit of Sanford Health a year ago, paving the way for tighter integration between clinical care and retail prescription services.

The physical layout creates a direct connection to the neighboring Good Samaritan – Founder’s Crossing campus. Residents moving into the campus’s independent living villas—with independent and assisted living apartments, memory care suites, short-term rehabilitation, and long-term care scheduled to open over the next couple of years—will have immediate access to medical services and home medical equipment without traveling to the core of town.

Sanford has held the underlying land for roughly 15 to 20 years, waiting for regional development to catch up with long-term infrastructure strategies. While the main medical center in the center of Sioux Falls handles subspecialty, surgical, and emergency room services, this project represents a deliberate rooftop strategy to place general and acute care closer to expanding neighborhoods.

TSP is serving as the architect for the project, with Fiegen Construction acting as the general contractor. Meanwhile, external infrastructure timelines continue to shift around the site; Veterans Parkway is projected to extend from Interstate 90 to Western Avenue by late fall of 2028, with the final connection linking Western to Interstate 29 targeted for 2029.

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