

The University of South Dakota announced it will move the state’s only medical school from Vermillion to Sioux Falls. According to the announcement made by USD President Sheila Gestring on August 14, the change will take place in time for the Fall 2027 semester.
The university will then temporarily use a space provided by Sanford Health in Sioux Falls while funds are raised and a $150 million dollar facility – potentially a 200,000 square-foot building – is being constructed as the permanent home of the medical school. Depending on donations received, the process could take from seven to 10 years. In general, funding is expected to come from a mix of public and private supporters, grants, and the reallocation of current internal resources that now go to the campus in Vermillion.
Philanthropist Denny Sanford attended the announcement along with Governor Rhoden, Sioux Falls Mayor Paul Tenhaken, and Sanford Health President and CEO Bill Gassen. Sanford was acknowledged for donating $20 million to the medical school in 2006. The gift prompted the renaming of the program to Sanford School of Medicine. Sanford also donated an additional $300 million to start seven medical residency programs.
Proponents of the move say the four-year medical program students already spend 30 months outside of Vermillion — traditionally only the first 18 months are spent on the campus in Vermillion. They also point to the potential to train more physicians. The USD Sanford School of Medicine receives an average of 1,100 to 1,200 applications annually and admits about 71 per year.
Naysayers point to the loss to the Vermillion community as a whole, including the 70 students and about 70 faculty, researchers, and administrative staff. Most staff are also expected to be relocated to Sioux Falls.
USD’s four-year medical school program has been based in Vermillion for over 50 years. In 1974 when it was established, South Dakota ranked last in the nation in physicians per capita. South Dakota now ranks 35th in the country, with 2,200 practicing physicians.
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