New $18 Million Hospital Planned For Custer, South Dakota

Rapid City Regional Health says it expects to open a new $18 million hospital and clinic in Custer in about two years.

The 42,000-square-foot hospital will be built through a private-public funding partnership between the city of Custer and Regional Health of Rapid City. The new facility will replace Custer’s aging existing hospital.

The project was announced at a Custer City Council meeting last week. The agreement means Rapid City Regional Health will own and operate Custer Regional Hospital and finance all but $4 million of the cost.

The city of Custer will fund the balance from a city sales tax, capped at a maximum contribution of $375,000 annually.