San Jose’s planning commission has given Kaiser Permanente the green light to redevelop its medical campus and build a state-of-the-art hospital more than twice the size of its current one.
Kaiser’s immediate plans include a 110-foot-tall, 685,000-square-foot hospital, energy center, and five-story parking lot at 250 Hospital Parkway. According to documents filed with the city, it hopes to begin construction next year.
“I think it’s an exciting project,” said District 8 Commissioner Dilpreet Bhandal. “Kaiser is reinvesting dollars into the current facility and there’s a net increase in beds and everybody gets their own room in the new structure.”
The state’s regulations for older hospitals, which required them to meet seismic standards by 2030, spurred Kaiser’s decision to redevelop the campus. Kaiser elected to build the new hospital instead of upgrading the existing seven-story, 90-foot-tall hospital, which was constructed in 1974.
“Generally, it’s been our experience that we need to replace them,” Project Director Lee Ann Knight said. “In order to upgrade them structurally, you’d have to basically move everybody out to get to the structure itself.”
Knight said that Kaiser had replaced several other facilities in Northern California since the state law changes, including in Redwood City, Oakland and San Leandro.
Knight declined to provide the exact construction cost but said it was safe to say that Kaiser was investing hundreds of millions of dollars in the project.
The new facility, which would be one of the first all-electric hospitals in the state, is 435,000 square feet larger than the current building and increases bed capacity from 247 to 303. The expanded capacity would give patients their own rooms. Knight said the current facility averaged 160 patients.
Senior land use manager Tina Wehrmeister said that Kaiser will keep the current hospital up and running until construction is completed and will eventually demolish the building.
An environmental impact report filed earlier this year laid out a preliminary construction schedule from February 2025 to February 2029.
Along with the improved facilities and healthcare capabilities, Kaiser’s plan offers several economic benefits. Once completed, the new facility will add about 800 jobs.
San Jose will also receive $1.75 million in commercial linkage fees that will go towards affordable housing.
Kaiser has also indicated its willingness to make other improvements on the campus once the new hospital is complete.
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In addition to the new hospital, the healthcare giant has proposed demolishing two other existing one-story medical offices and building a new four-to-six-story, 250,000-square-foot outpatient facility and a six-story parking garage that could add 800 more jobs.
Although the project will take years to complete, some nearby residents were excited and said it would be worth any inconvenience.
“The small downside of having noise and construction traffic for 3-4 years for our neighborhood,” said resident Dave Nyberg. “In the long term, we think it’s going to be a really good benefit and impact our housing in a good way.”
