The University of South Dakota is relocating its medical school to Sioux Falls to enhance competitiveness, expand clinical and research opportunities, and strengthen ties with major health systems like Sanford and Avera.

Students support the move, citing better access to research and clinical experiences, especially for those planning to practice in South Dakota.

This relocation will facilitate closer collaboration between clinical faculty and researchers, as both the medical school and research division will be based in Sioux Falls.

South Dakota leaders, including Governor Larry Rhoden and Sioux Falls Mayor Paul TenHaken, see the move as a positive step for healthcare and education, despite some transitional challenges.

The university plans to move the first 18 months of its MD program and its Division of Biomedical and Translational Sciences to Sioux Falls starting in summer 2027, with a new $150 million medical school facility to be built within seven to ten years, funded mainly by donors.

The move involves relocating 57 medical students, 24 faculty members, 15 researchers, and 29 staff, with some faculty offered relocation packages or internal transfers, while most students already commute from Sioux Falls.

University leadership views this transition as a significant advancement in healthcare and medical education for South Dakota.

The relocation will free up space in Vermillion, allowing expansion of existing programs and repurposing the vacated Lee Medicine Building for future community growth.

The move is expected to impact the Vermillion community, which has a population under 12,000, with mixed reactions; while some community leaders acknowledge potential benefits like improved housing, others recognize the loss of the medical school.

State Senator Sydney Davis emphasizes that other programs in Vermillion are expanding and that the move will improve program efficiencies without affecting other departments.

Despite concerns about losing the university, existing programs in Vermillion are growing, and the move aims to improve overall program efficiency.

Statistics show that nearly half of USD’s MD graduates return to South Dakota to practice, and over 75% of those completing residencies in the state stay to practice, highlighting the program’s role in bolstering local healthcare.

The announcement was made during a press conference in Sioux Falls involving state and city officials, the South Dakota Board of Regents, and major healthcare systems, emphasizing the goals to improve education, foster healthcare collaboration, and expand research to serve South Dakota communities.