University Health, Bexar County leaders hold beam signing for planned South Side hospital

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Palo Alto Hospital slated to open in 2027

Construction on the forthcoming Palo Alto Hospital continues, with completion slated for 2027. University Health is opening the hospital on San Antonio's South Side. (KSAT)

SAN ANTONIO – Several University Health and Bexar County leaders penned names and well-wishes onto a beam at a forthcoming South Side hospital.

On Wednesday, construction crews added the beam to the structure’s highest floor.

The Palo Alto Hospital, situated near the Texas A&M University-San Antonio (TAMUSA) campus, is slated to open in 2027.

“We’re building more than just hospitals—we’re building a healthier, stronger South Side,” University Health CEO Ed Banos said in a news release.

Construction on the hospital began in January 2024.

The 68 acres of land being utilized for the project were approved as part of $10.4 million purchased by the Bexar County Hospital District Board of Managers in September 2021.

Construction crews lower the beam into place at the site of the forthcoming Palo Alto Hospital on San Antonio's South Side. The hospital is slated to open in 2027. (KSAT)

A five-story medical office building alongside the clinic and hospital is also planned, according to The Mesquite, TAMUSA’s digital student newspaper.

Part of the push from hospital and county officials lies in transportation challenges from nearby residents, as most of the city’s larger hospitals are situated downtown and in northern San Antonio.

“Many of my constituents who may tend to skip their appointments will no longer do that,” said Bexar County Precinct 1 Commissioner Rebeca Clay-Flores. “So together, we are saving lives.”

Equally, however, hospital officials believe the area can become a significant economic driver, benefiting through partnerships with TAMUSA, JCB and Toyota.

“By working in close partnership with the growing Texas A&M–San Antonio campus, Toyota and JCB developments to name a few, we’re doing more than providing care—we’re creating an economic engine that fuels opportunity, drives innovation, and builds momentum for generations to come," Banos

JCB, for example, broke ground on a 400-acre factory on the South Side last year. The new facility, the company’s second in North America, will be located near Palo Alto Road and South Zarzamora Street.

Meanwhile, TAMUSA is executing its own public health-related projects.

A 35,500-square-foot Public Health and Education facility is planned at the university, with substantial completion scheduled for next January, university officials said.

Banos expects new housing projects nearby to also benefit from the infrastructure and job investments.

“This isn’t just growth. It’s transformation—from the ground up, for all of us,” Banos said.

University Health is also planning to open a hospital near Retama Park. That project is also expected to be completed in 2027.

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