April 2, 2026
The University of South Dakota Sanford School of Medicine will move its MD program from Vermilion to Sioux Falls sooner than expected.
This accelerated timeline is made possible because Sanford Health has offered to lease space in a building on its Sioux Falls campus for the program, while Avera Health will also provide classroom space to enhance collaboration and integration opportunities with the city’s health system.
“We couldn’t be more grateful to our medical partners for coming together and making this happen much sooner than we could have imagined,” said USD President Sheila Gestring. “That’s amazing.”
In August 2025, USD announced that it would move the first 18 months of its MD program, known as Pillar 1 of the medical school curriculum, to Sioux Falls starting in summer 2027. The multi-phase plan included the use of temporary locations until a permanent location was identified. Construction costs for the new building are estimated to be up to $50 million, but no construction schedule has been established.
The School of Medicine will now bypass the interim phase and permanently occupy the approximately 50,000 square foot Talley Building on the Sanford USD Medical Center campus. The building is adjacent to the medical school’s existing facilities there and is of the same size as identified as a need for the future medical school program.
“Investing in graduate medical education is one of the most important things we can do for the future of health care, because it means building a strong, highly trained workforce that will care for our communities for generations,” Bill Gassen, president and CEO of Sanford Health, said in a statement.
“By expanding the School of Medicine’s presence on campus, we are creating an environment where education, research and clinical care work together in powerful ways. We could not be more excited about this next chapter and the opportunity to shape the future of medicine here in Sioux Falls.”
The building is named for the late Dr. Robert Talley, who served as dean of the USD Sanford School of Medicine and was a driving force in establishing the school’s initial presence in Sioux Falls.
“Dr. Talley’s impact on the School of Medicine and the Sioux Falls community makes this location an ideal and permanent home for the Sioux Falls MD program,” said Andy Mance, president and CEO of Sanford Sioux Falls.
The medical school plans to take a long-term lease on space and move to its new location in Sioux Falls by summer 2028.
The Tully Building currently houses audiology, dermatology, and ENT clinics.
“A series of phased construction and renovation projects will be undertaken at the Sioux Falls campus over the next several years to prepare Tully Building for the MD program,” Professor Mance said.
Construction will begin this summer, with all areas expected to be fully open and operational by summer 2028. Construction will be funded by Sanford and will include a new anatomy lab located elsewhere on the Sanford campus.
Avera has not finalized plans for classroom space, but said it is considering space at the Avera McKennan campus in downtown Sioux Falls.
“Avera has a long history of working with USD’s medical schools and other clinical academic institutions, and views the university as an important state resource. Last year, Avera offered more than 1,000 clinical rotations and will continue to invest in clinical education and build a strong, sustainable health care workforce for the future of our community,” Dr. Kevin Post, Avera’s chief medical officer, said in a statement.
“More than half of USD’s Frontier Medicine and Rural Medicine students receive their valuable education in the Avera region, allowing us to train future physicians in a unique environment that we hope will inspire them to live and practice in the future.”
The health system “thought this would be good for South Dakota and the region, wanted to be a part of it, and decided, ‘Let’s do this together and make it happen,'” Gestring said.
“What we all agree is really important is that students have a consistent experience in the classroom. So we want the same technology, the same look and feel, and we all agree on that.”
Student response to the proposed move to Sioux Falls has been “overwhelmingly positive,” said Dr. Tim Ridgway, USD Sanford medical director and vice chancellor for health.
“They recognize that this move will bring many benefits to medical education. The accelerated timeline makes this move more realistic and they feel very excited.”
Bringing the preclinical stages of student training together in one place is “very appealing to students,” Ridgway added.
“Based on feedback from our students to date, we feel there is a good chance that some of our students who have been accepted to other medical schools will prefer us given this change.”
Where doctors complete their education is important, Mance added.
“More than half of family physicians remain within 100 miles of their training location,” he said. “By permanently bringing preclinical medical education to our campus and closer to our care teams, research operations, and training programs, we are strengthening that pipeline and investing in a sustainable physician workforce in South Dakota and the surrounding region.”
Also, if medical schools can attract more faculty to teach the Pillar 1 curriculum, they may be able to start admitting more students. Training in Sioux Falls will make training easier for many people, Ridgway said.
“They no longer have to spend half a day driving from the clinic to Vermillion, teaching and then back to Sioux Falls,” he said.
“We anticipate greater excitement due to easier access to faculty and an accelerated schedule. Previous discussions have been visionary and theoretical in nature. The accelerated plan will generate real enthusiasm on the part of faculty, staff, and most importantly, students. The education of medical students will take a major step forward.”
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