El Camino Hospital just paid $23.4 million for a 16-acre lot on Santa Teresa Boulevard. The speculation for a lot that size is that El Camino might be interested in building their third hospital on this site (they already have full-service hospitals in Mountain View and Los Gatos). The amount of land is far more than what is needed for just medical offices, and South San Jose has enough population to support another hospital in the area--especially with more housing going up at the old IBM campus.
El Camino has been hesitant to announce any concrete plans and has indicated that we shouldn't expect anything to happen soon. I'm hoping they don't sit on the land for too long. If built the project would not bring in any new tax dollars since it would be exempt, but a hospital in the area would improve services for local residents, bring more jobs, and likely increase housing values in the area.