2 new University Health hospitals placed in growing areas of Bexar County deemed ‘healthcare deserts’
The Palo Alto Hospital will open in April on the South Side while the Retama Hospital will open in February on the Northeast Side
Courtney Friedman, Anchor/Reporter
Eddie Latigo, Photojournalist
Published: July 10, 2026 at 8:16 PM
BEXAR COUNTY, Texas – Gilbert Diaz Sr. was diagnosed with liver cancer in November
“I got rushed to University Hospital and they found the tumors,” Diaz said
“We were going into the Medical Center for all of his treatments,” said his daughter, Erika Valderrama
That’s not close to his Live Oak home, where he’s lived and raised his family for 30 years, an area where the population is now exploding
“There’s all the new housing and a lot more people,” Diaz said. “It’s growing and definitely having a hospital nearby, it really helps the people.”
“Especially when you have elderly patients who may not drive or have lack of transportation,” Valderrama said
Their family is thrilled University Health System chose the Northeast Side for one of two new hospitals, right near Retama Park
“We know the northeast corridor between San Antonio and Austin is growing so fast. We also looked at the numbers of our patients who come from different parts of town to the Medical Center facilities and many of them come from the northeast neighborhoods,” said University Health spokesperson Elizabeth Allen
Allen said the Retama Hospital should be finished in February 2027
The other, slightly larger hospital being built as part of the same funding project is the Palo Alto Hospital on the South Side, set to open in April 2027
“The South Side has long been a healthcare desert, and recently in the last couple of years, lost an important South Side hospital. So us coming in to fill that gap, it’s really good for the community,” Allen said
It’s right next to Texas A&M University and around the corner from the Toyota plant, which just landed a big expansion with 2,000 new jobs coming
University Health also just opened a primary care clinic near each of these new hospitals. The Wheatley Health Center is next to Retama Hospital, and the Por Vida Clinic is next to the Palo Alto Hospital
Allen said they are both already swamped, which is proof of the need in these areas
The most recent news from these projects is that they both went under budget, a combined $60 million
University Health decided to take an extra $30 million in reserves to create $90 million total to increase the bed numbers in both of these hospitals before they even open
The expanded scope at the University Health Retama Campus includes finishing out 20 additional inpatient rooms, bringing the total at opening to 167 beds
At University Health Palo Alto, the extra funding will add 60 more inpatient rooms for a total of 227
“This development also frees up more beds at University Hospital and the Medical Center for the more difficult and challenging cases,” Allen said
Back in November, Diaz was one of those challenging and serious cases, but no longer
“I’m in remission,” he said
Now, he’s hoping to soon have follow-ups and other care at his neighborhood Retama Hospital
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