Avera Health Receives Record $35 Million Gift for New Golisano Children’s Hospital in Sioux Falls

Philanthropist B. Thomas Golisano Provides Historic $35 Million Investment

Avera Health has secured the largest single donation in its history with a $35 million gift from entrepreneur and philanthropist B. Thomas Golisano. This transformative contribution will support the construction and operation of a new children’s hospital facility in Sioux Falls, which will be renamed the Avera Golisano Children’s Hospital in recognition of the gift.

The donation comes from Golisano, founder of Paychex Inc., who has contributed over $1 billion to philanthropic causes throughout his career. His latest investment represents a significant milestone for both Avera Health and pediatric healthcare delivery in the upper Midwest region.

Six-Story Patient Care Tower to Open in Early 2027

The gift supports ongoing construction of a six-story, 220,000-square-foot patient care tower at Avera McKennan Hospital & University Health Center. The $165 million facility represents part of a broader $245 million expansion project, marking the largest building initiative in Avera’s organizational history.

The new tower will be dedicated exclusively to newborns, children, and families, featuring centralized hospital space for birthing, newborn nursery services, and pediatric care. The facility is scheduled to open in early 2027, significantly expanding Avera’s capacity to serve young patients across its five-state service area.

Joining National Children’s Hospital Network

With this gift, Avera becomes the 15th member of the Golisano Children’s Alliance, a national network of children’s hospitals launched in 2025. The alliance focuses on improving pediatric healthcare delivery, advancing medical innovation, and ensuring families have access to high-quality care close to home.

Avera holds the distinction of being both the westernmost and most rural member of this growing alliance. Golisano has indicated plans to expand the network to include up to 40 children’s hospitals across the country, representing a significant shift in how pediatric healthcare is delivered nationally.

Financial and Operational Impact for Healthcare Organizations

The investment demonstrates the critical role of major philanthropic gifts in healthcare capital projects. For Avera, the donation significantly reduces the financial burden of the $245 million expansion while enabling enhanced service delivery capabilities.

The new facility will support several key operational improvements including expanded behavioral health services for children and adolescents, increased access to pediatric specialists, and enhanced telemedicine capabilities for rural communities. These developments align with broader healthcare industry trends toward specialized pediatric care and improved access in underserved regions.

The project also represents substantial economic activity for the Sioux Falls area, with the construction phase alone generating significant employment and local spending. Healthcare organizations considering similar expansions can examine this model of combining philanthropic support with strategic facility development.

Regional Healthcare Access and Specialized Services

The Avera Golisano Children’s Hospital will serve families across a five-state region, addressing geographic challenges that force many families to travel long distances for specialized pediatric care. The facility design includes accommodations for families to remain close to children during treatment and recovery periods.

The hospital will integrate with Avera’s existing system-wide pediatric programs, supporting specialty and subspecialty care delivery through both in-person and virtual platforms. This approach reflects modern healthcare delivery models that combine centralized expertise with distributed access points.

Healthcare organizations navigating major capital expansions and fundraising initiatives can benefit from specialized guidance. Contact James Moore’s healthcare practice team to discuss how these developments may impact your organization.

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