A University of Utah Health campus with a full-scale hospital is coming to The Point in Draper, part of a $5 billion spending push that positions the health system as the anchor for the 600-acre development on the former state prison site.

The university's Board of Trustees approved a $43.5 million land purchase in June for 45.8 acres at The Point, where U of U Health plans a roughly 200,000-square-foot medical campus with both inpatient and outpatient services. The Point of the Mountain State Land Authority board voted unanimously to approve the deal.

When fully operational, the campus is expected to employ approximately 2,500 clinical and non-clinical staff, according to U of U Health.

The Draper project is one of three major health system builds. A new hospital is under construction in West Valley City, and a cancer hospital is in the works in Vineyard. Together, the three projects will require $5 billion over five years, deputy enterprise CFO Gary McArthur estimated during an August Board of Trustees budget presentation, as the Salt Lake Tribune reported. That spending is funded largely through donations and operating performance.

The health system's total projected revenue for fiscal year 2027 is $7.5 billion.

"The idea here is to bring care closer to home for individuals who are in the southern part of Salt Lake Valley," U of U Health CEO Bob Carter said when presenting the land purchase to trustees on June 10. "We know that growth is imperative because the state is growing, and the health system, likewise, has found significant demand from that region."

The campus will serve residents across Draper, Bluffdale, Lehi, South Jordan, Sandy, Riverton, Herriman and surrounding communities in both Salt Lake and Utah counties.

Exclusive provider, long timeline

Under the agreement, U of U Health holds exclusive health care provider rights at The Point for 12 years, with an automatic 30-year extension once the university builds the 200,000-square-foot facility, according to ConstructConnect. Construction is estimated to begin in five to 10 years, though design and structural details remain in early conceptual phases.

Lowry Snow, co-chair of The Point of the Mountain State Land Authority board, said at the June 10 trustees meeting that the deal had been in the works for six to eight months and called it a win for both The Point and the state of Utah.

The Point taking shape around it

The health campus will sit adjacent to Phase I of The Point's 104-acre downtown core, which broke ground June 29. That phase is backed by $165 million in state infrastructure funding and a $2.3 billion private commitment from The Point Partners, a team led by Lincoln Property Company, Colmena Group and Wadsworth Development Group.

Phase I plans include a 5,000-seat Mountain America Event Center, a 363-unit residential complex with ground-floor retail and a walkable street called The Promenade. Four buildings are expected to go vertical within 12 months of the June groundbreaking.

The broader Point development is projected to generate more than $7 billion in GDP and create over 46,000 jobs by 2048, according to state projections cited at the June 25 ceremonial signing at the Utah State Capitol.

No construction start date or detailed campus designs have been released. U of U Health said a development timeline will be shared as conceptual designs progress.