Kaiser Permanente is moving forward with a major medical campus expansion in Folsom that will bring up to 340,000 square feet of new medical offices and hundreds of healthcare jobs to the Palladio Parkway area over the next two decades.
Kaiser Permanente owns entitled property along Palladio Parkway for a massive medical center buildout that could span 340,000 square feet across seven phases over 20 years, according to the Kaiser Folsom Medical Center Master Plan. The expansion responds to Folsom's rapid growth and will bring hundreds of new healthcare jobs to the area. Homeowners near Palladio can expect improved access to medical services starting with a 27,000-square-foot facility slated to break ground in 2026.
The Kaiser Folsom Medical Center Master Plan covers roughly a 100-acre site divided by a central boulevard and anticipates development in seven phases over about 20 years, with entitlements processed through the City of Folsom. The phased approach allows Kaiser to scale its medical infrastructure in step with the region's population growth.
Kaiser's 27,000-square-foot expansion in Folsom is being reviewed by the city and is expected to start construction in 2026 with an anticipated 2028 opening. The health system is also planning a separate 183,000-square-foot medical office building in Folsom, with construction expected to begin in 2028.
The Palladio Parkway project is part of Kaiser's broader Northern California facilities plan, which includes multiple new medical offices and hospital expansions coming online between 2025 and 2029. The Folsom buildout fits within that multiyear capital program as Kaiser responds to population growth across the Sacramento region.
Local development analysis around Palladio characterizes Kaiser's planned Folsom expansion as a new medical clinic and office project that will complement nearby commercial growth, including a new hotel, and further anchor the medical and retail hub at Palladio Parkway. The Kaiser project is planned to generate several hundred healthcare jobs when fully built out, indicating a substantial multi-phase expansion rather than a small satellite office.
The new facilities will function as a clinic and medical office development that will significantly expand services beyond Kaiser's existing Folsom presence. The Kaiser Folsom medical project is tied to the broader Folsom Medical Center master plan on the 100-acre site, divided by a shared boulevard and linked by a pedestrian plaza.
Kaiser's existing Folsom medical center master plan includes roughly 1.3 million square feet of medical space, along with a 430-bed hospital, three medical office buildings, an ambulatory surgery center, and two parking structures. The master plan also includes a 50,000-square-foot ambulatory surgery center and parking for approximately 2,500 cars, which form the backbone of Kaiser's long-term Folsom medical campus that the new expansions will plug into.
The expansion comes as Folsom has experienced significant population growth in recent years, creating increased demand for healthcare services in the area. The phased development approach allows Kaiser to adjust the pace and scope of construction based on community needs and market conditions over the next two decades.
For Folsom residents and prospective homebuyers, the Kaiser expansion represents a major infrastructure investment in the Palladio corridor. The addition of hundreds of healthcare jobs and expanded medical services is expected to enhance the area's appeal and support continued residential and commercial development along Palladio Parkway through 2045.