Dignity Health Folsom Ranch project advances with $42 million in new building permits

Story highlights

• Dignity Health filed over $42 million in building permits for its Folsom outpatient facility.
• The 90,000-square-foot Advanced Ambulatory Care Center is scheduled to open in summer 2027.
• XL Construction will begin steel erection this month with topping-off expected by late July.

Dignity Health’s planned Advanced Ambulatory Care Center in Folsom Ranch is moving into a new construction phase after more than $42 million in recently filed building permits tied to interior medical build-outs, outpatient services and specialty care operations.

The filings, for the project at 3185 McCarthy Way in Folsom, outline multiple tenant improvement packages for the 90,000-square-foot outpatient facility first announced by Dignity Health last year.

The permits include $13.9 million for an ambulatory surgery center; $13.3 million for clinic space; $13.1 million for urgent care, laboratory and imaging services; and another $2.5 million for infusion services, according to public filings.

The permits were filed by project architect Perkins&Will and issued to NexCore Group, the project developer and building owner, according to information provided by XL Construction Corp. Dignity Health, part of CommonSpirit Health, will serve as the tenant and operator of the facility.

The filings mark a significant phase of the broader $123 million healthcare development as construction transitions deeper into vertical building and systems coordination.

“The new permits represent a milestone in our construction process,” said Rob Marchuk, market president of physician enterprise for Sacramento at Dignity Health, in an emailed statement. “The foundation is almost complete, and soon we will start erecting the steel beam structure.”

The Folsom Ranch facility is designed to consolidate outpatient surgery, urgent care, imaging, specialty clinics and infusion services under one roof as Dignity Health expands its footprint in eastern Sacramento County. The project is phase one of a potentially larger medical campus that could eventually include a hospital and medical office building.

Marchuk said Dignity Health remains on track for a summer 2027 opening and plans to hold a beam topping-off ceremony later this summer. He said continued population growth in Folsom and El Dorado Hills is driving investment in the area.

Denver-based NexCore Group, a national healthcare real estate developer, is developing the project in partnership with CommonSpirit Health. The company previously redeveloped Sacramento’s Alhambra Medical Office Building, which serves as a Sutter Health outpatient hub. NexCore representatives couldn’t immediately be reached for comment.

XL Construction, the project’s general contractor, recently completed slab-on-grade concrete pours and underground utility coordination required before vertical construction could begin, according to Kevin Ng, senior vice president at XL Construction.

“Site utilities are complete; fire water is now active which was critical to obtaining vertical construction permit approval,” Ng said in an emailed statement.

Ng said medical construction projects require extensive coordination because specialty equipment often demands precise mechanical and electrical infrastructure before concrete placement occurs.

Among the more technically complex portions of the project is the installation of a magnetic resonance imaging machine, which requires specialized shielding and structural preparation, including construction of a copper-lined “Faraday cage” designed to block outside radio frequency interference, Ng said.

XL Construction did not disclose projected on-site workforce totals but said peak activity is expected to involve about 20 trades operating simultaneously. Current activity includes underground utility work, grading, landscaping, concrete and steel operations.

“We are proud to partner with CommonSpirit and NexCore Group to bring critical and much needed healthcare services to the Folsom community,” Ng said. “The difference this facility will make to the people who will rely on its services makes it that much more rewarding to build.”

Steel erection is scheduled to begin this month, with topping-off expected by late July and exterior façade installation anticipated in September, according to XL Construction.