City officials and Sutter Health executives unveiled the provider’s new medical offices location June 11 on Juan Hernandez Drive. The offices are expected to open this summer. Contributed photo.

Sutter Health, a not-for-profit healthcare system that serves millions of patients in California, will soon open new medical offices in Morgan Hill that offer internal and family medicine, among other services. 

On June 11, Sutter Health staff and City of Morgan Hill officials held a ribbon cutting ceremony at the location of the new offices—an existing medical building at 16130 Juan Hernandez Drive. Sutter Health recently leased a 9,950-square-foot portion of the building and plans to begin offering its first services—starting with advanced imaging—this summer.

The lease by Sutter Health’s Palo Alto Medical Foundation represents the providers’ efforts to meet the growing demand for healthcare services in Morgan Hill and surrounding areas, according to company executives. 

“Our expansion into Morgan Hill marks a milestone in our mission to continuously improve healthcare access and care delivery,” said Kevin Cook, Greater Silicon Valley president for Sutter Health. “We recognize Morgan Hill residents have unique healthcare needs, and this lease is a significant step toward meeting them.”

This summer, Sutter Health plans to progressively expand the Juan Hernandez Drive building’s advanced imagery suite, offering MRIs this summer with radiology and other services operational by the end of this year, explained Dr. Alan Sue, Sutter Health’s Medical Director for the Morgan Hill site. 

After that, the company plans to open new offices for family and internal medicine at the Juan Hernandez Drive building by early 2025. 

By that time, up to seven physicians will be working at the Morgan Hill Sutter Health building. With nursing, office and medical support staff, the site will employ about 20 people, Sue said. 

“This is expanding the Sutter practice as well as helping to serve the community,” Sue said. “We know there is a lot of growth in the Morgan Hill community, and we recognize this and we want to preserve our commitment to Morgan Hill.”

Sue added, “We’re very excited to be a part of the community.” 

The Morgan Hill lease is also part of Sutter’s broader plan to address the need for better healthcare access by adding more than 25 new ambulatory care centers throughout northern California in the coming years. 

“Many residents of Morgan Hill and the surrounding communities travel to see PAFMG doctors in San Jose, Los Gatos, Mountain View and Santa Cruz,” said Dr. Kurt VandeVort, CEO of PAFMG. “We’re excited to offer primary care closer to where these folks call home.” 

Sutter Health said the Morgan Hill Care Center is well suited for the provider’s needs. It also offers another strategic advantage in its proximity to a parcel of land that is entitled for future medical development. 

That property is an 8.5-acre parcel, also on Juan Hernandez Drive, purchased earlier this year by Sutter Health. 

Located next to Highway 101, much of that property is already entitled for up to 124,500 square feet of development, including healthcare purposes, according to a press release from Sutter Health. 

Although Sutter Health has not yet submitted plans for that property, the investment “underscores Sutter’s long-term goal to provide accessible, high-quality healthcare services to Morgan Hill and surrounding communities,” says the press release. 

For the City of Morgan Hill, healthcare has long been targeted as an industry to build locally for the economic development potential, according to city staff. 

“We are pleased Sutter Health is establishing a presence in Morgan Hill, as their services will help enhance the quality of life for our residents,” said Morgan Hill Economic Development Director Matt Mahood.  

Sutter expects to begin offering patient care services at the Morgan Hill Care Center in phases, starting with MRI services before the end of 2024.  

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Michael Moore is an award-winning journalist who has worked as a reporter and editor for the Morgan Hill Times, Hollister Free Lance and Gilroy Dispatch since 2008. During that time, he has covered crime, breaking news, local government, education, entertainment and more.


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