Statement on the East Bay

Sutter Health Statement

"Sutter Health has decided not to pursue a hospital on its current Emeryville property. The most significant barrier was the lack of a clear and predictable regulatory path. Over two years, we pursued relief under the California Environmental Quality Act, or CEQA. Those efforts did not secure the certainty needed to advance the hospital project, leaving it vulnerable to litigation that could delay construction and new hospital services for years.

"Instead, we will advance plans for comprehensive outpatient care in Emeryville, including primary and specialty care, diagnostic services and outpatient surgery, while evaluating alternative East Bay locations for a future hospital. Separating these projects keeps healthcare investment moving and allows us to advance additional outpatient services that can bring care to patients sooner. No alternative location has been selected, and we are assessing several options that can support comprehensive hospital, emergency and specialty care and the infrastructure needed for the future.

"Community feedback and our continued assessment of changing healthcare needs also helped shape our plans for Emeryville and our broader approach to expanding care across the East Bay. Emeryville remains an important part of Sutter Health's East Bay strategy. We will continue working with the city of Emeryville through the required approval process to expand access to care at the site.

"There is no immediate change to patient care or services at Alta Bates. We continue investing in care there and are pursuing legislation that could allow the campus to remain open during the years needed to plan, approve and build a new East Bay hospital.

"The legal and regulatory challenges extend beyond this project. California hospitals face significant seismic deadlines, while efforts to modernize or replace facilities can be exposed to lengthy regulatory reviews and litigation. A different location alone will not resolve these challenges. We will continue working with state leaders on solutions, including consideration of a full CEQA exemption, that protect access to care and provide a clearer path for essential healthcare investment.

"Our commitment to the 542,000 patients we serve across the East Bay remains strong. We will continue expanding access to care today while pursuing the location and regulatory certainty needed to build the East Bay's future hospital, and we will keep patients, employees, physicians and the community informed as this work advances."

Moving Forward on the Future of Care in the East Bay -An Open Letter to Our Community

To our East Bay community,

For generations, Sutter Health has cared for patients and families across the East Bay. As we plan for the future, we must both expand access to care today and prepare for the hospital services the region will need for decades to come.

Today, we are announcing a new path forward.

Sutter Health will move ahead with a broad range of outpatient services at our planned Emeryville campus at Hollis and 53rd streets, and we will now evaluate different East Bay sites for a future hospital in place of the Emeryville site, while strengthening hospital services at the Berkeley campus of Sutter's Alta Bates Summit Medical Center.

Our decision reflects both the changing healthcare needs of the East Bay and the uncertainty surrounding the approval process for the Emeryville hospital. After seeking greater certainty under the California Environmental Quality Act (CEQA) over two years, the project remains vulnerable to litigation and years of potential delay. We cannot allow that uncertainty to stall needed investments in care.

Expanding care in Emeryville

Emeryville will remain an important part of our East Bay strategy. We will continue working with the city to advance plans for primary and specialty care, including services for women and children, heart and digestive care, ENT, urology and orthopedics, along with imaging, laboratory, pharmacy and outpatient surgery.

Moving forward with outpatient care allows us to bring more services to the community sooner while creating jobs and supporting the local economy.

Planning for the East Bay's future hospital

We remain committed to building a new hospital in the East Bay and are evaluating potential sites that can support emergency care, advanced clinical services and the region's future needs.

We also will continue working with state leaders to establish a clearer, more reliable approval path for major hospital projects. California hospitals face significant seismic requirements, and health systems need a realistic path to modernize or replace facilities without years of avoidable delay.

Protecting care at Alta Bates

As we pursue a long-term hospital solution, we will do all we can to keep the Alta Bates campus in Berkeley open and serving patients. We are seeking policy changes that would allow the campus to continue operating during the time needed to plan, approve and build a future hospital.

We also continue to invest in Alta Bates today, including improvements to the emergency department, patient care areas and spaces for our physicians and care teams.

Continuing our commitment to the East Bay

Our commitment to the more than 540,000 patients we serve across the East Bay remains strong. We are continuing to expand access across the region, including the new Stanford Medicine Sutter Health Cancer Center in Oakland opening in December 2026, as well as new sites for urgent, primary and specialty care, imaging, infusion, surgery and laboratory services.

We know this change may be disappointing, particularly for the employees, physicians and community members who have invested significant time in the Emeryville hospital plans. We are grateful for their work and will continue to involve them as our plans move forward.

Our path has changed, but our commitment has not: expand care in Emeryville, protect hospital access at Alta Bates and create a clear path to the East Bay's future hospital.

We will keep our patients, physicians, employees and communities informed as this work advances.

Sincerely,

Warner Thomas
Sutter Health President and CEO

Christina Oh
Sutter Health Executive Vice President and Chief Operating Officer