With newly offered building space, USD Sanford School of Medicine accelerates transition to Sioux Falls

April 2, 2026

The University of South Dakota Sanford School of Medicine will be moving its Doctor of Medicine program from Vermillion to Sioux Falls sooner than expected.

The accelerated timeline is possible because Sanford Health has offered to provide leased space in a building on its Sioux Falls campus for the program, while Avera Health also plans to provide classroom space, enhancing collaboration and integration opportunities with the health systems in the city.

“I couldn’t be more grateful for the health partners coming together and making this a reality so much faster than I could have ever imagined,” USD President Sheila Gestring said. “It’s amazing.”

In August 2025, USD announced that it would move the first 18 months of the M.D. program, referred to as Pillar 1 of the medical school’s curriculum, to Sioux Falls starting in the summer of 2027. The multiphase plan included use of a temporary location while a permanent site was identified. Estimates put a new building at up to $50 million, with no timeline established to build it.

The medical school now will bypass the temporary phase, permanently occupying the approximately 50,000-square-foot Talley Building on the campus of Sanford USD Medical Center, which is adjacent to the medical school’s existing facility there and the same size that was identified as a need for a future medical school program.

“Investing in graduate medical education is one of the most important commitments we can make to 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 medical school’s presence on our campus, we are creating an environment where education, research and clinical care come together in powerful ways. We could not be more excited for this next chapter and for the opportunity to shape the future of medicine right here in Sioux Falls.”

The building is named after the late Dr. Robert Talley, who served as dean of the USD Sanford School of Medicine and was a driving force in initially establishing the medical school’s presence in Sioux Falls.

“The impact Dr. Talley made on the medical school and the Sioux Falls community makes this location an ideal, permanent home for the Doctor of Medicine program in Sioux Falls,” said Andy Munce, president and CEO of Sanford Sioux Falls.

The medical school is expected to move to its new location in Sioux Falls by the summer of 2028 with a long-term lease on the space.

The Talley Building currently houses audiology, dermatology and ear, nose and throat services.

“A phased series of construction and renovation projects will take place on our Sioux Falls campus over the next several years to prepare the Talley Building for the M.D. program,” Munce said.

Construction is expected to begin this summer, with all areas fully open and operational by the summer of 2028. The construction will be funded by Sanford and include a new anatomy lab elsewhere on the Sanford campus.

Avera hasn’t finalized a plan for classroom space but said it’s considering space on its Avera McKennan campus in central Sioux Falls.

“Avera has a long history of working with USD’s medical school, as well as other clinical academic institutions, and views the school as a vital state resource. Last year, Avera offered over a thousand clinical rotations and will continue to invest in clinical education and building a strong, sustainable health care workforce for the future of our communities,” Dr. Kevin Post, chief medical officer for Avera, said in a statement.

“More than half of the USD Frontier and Rural Medicine students are in Avera communities receiving a valuable education, which allows us to train future physicians in a unique environment where we hope they will want to live and practice in the future.”

The health systems “saw the benefit of this for the state of South Dakota and the region and wanted to be part of it and decided ‘let’s do this thing together and make it happen,’” Gestring said.

“The key thing that all of us agree is really important is that students have a consistent experience in those classrooms, so we want the same technology, the same look and feel, and everybody is on board with that.”

Reaction from students to the planned move to Sioux Falls “has been overwhelmingly positive,” said Dr. Tim Ridgway, dean of the USD Sanford School of Medicine and vice president of health affairs.

“They recognize the many advantages this move will offer them in their medical education. The accelerated timeline makes this move more of a reality, which they find very exciting.”

Bringing the preclinical phase of students’ training in one place “is very attractive to students,” Ridgway added.

“Based on previous student feedback, we feel it is quite possible some students who have acceptances to other medical schools may prefer us given the change.”

Where physicians complete their education matters, Munce added.

“More than half of family medicine physicians remain within 100 miles of where they train,” he said. “By bringing preclinical medical education permanently onto our campus and in proximity to our care teams, research enterprise and residency programs, we are strengthening that pipeline and investing in a sustainable physician workforce for South Dakota and the surrounding region.”

The medical school also might be able to begin admitting more students if it’s able to attract more faculty to teach the Pillar I curriculum. Having the training in Sioux Falls will make it easier for many, Ridgeway said.

“They no longer will have to take half a day from their clinics to drive to Vermillion, teach and then return to Sioux Falls,” he said.

“It is anticipated that faculty access will be easier, and the accelerated timeline will create real excitement. To date, these discussions have been visionary and theoretical in nature. The acceleration of the plan creates genuine enthusiasm on the part of our faculty, staff and, most importantly, students. Medical student education will take a giant step forward.”

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