Banner Health is moving forward on a $400 million medical campus in north Scottsdale. The Phoenix-based health giant just filed for a conditional use permit to start building a 640,000-square-foot hospital at Hayden and Loop 101, according to a July 14 city filing.
This is phase two on a 48-acre lot Banner snapped up in March 2023 for $57.6 million cash (data via Vizzda LLC). The hospital will have 300 beds and follows phase one, which broke ground in May: a 120,000-square-foot Banner Health Care Plus building set to open in early 2027. That first phase will include primary and specialty care, urgent care, outpatient imaging, lab services, and a Banner MD Anderson Cancer Center—all in a three-story structure.
Banner expects the whole project will create 2,500 jobs and inject more than $750 million into Scottsdale’s economy, with $500 million from construction alone. Once operational, the campus should generate nearly $400 million a year in economic benefit for the community.
SmithGroup is the architect; Okland Construction is the general contractor.
Banner Health is no stranger to expansion. At any given time, it has $1 billion in construction underway and has served the Scottsdale market for 45+ years.
“This is part of a long-term strategy and vision around building that network in the northeast Valley,” says Troy Freeman, Banner’s VP of real estate. “We’re Arizona’s largest health-care provider. Our goal is to develop integrated networks that meet patients where they are and provide real consumer choice.”
Currently, over 50,000 Scottsdale-area residents use Banner’s health insurance plan. And the northeast Valley is only getting bigger—hundreds of acres of state land nearby have sold or are up for sale.
Banner’s new site is just a few miles east of Mayo Clinic, which is also expanding—$1.9 million in upgrades and a new 120-acre biotech hub at 56th Street and Loop 101.
Worth noting: Banner tried for years to build in Scottsdale, originally aiming for a 48-acre parcel at Loop 101 and Hayden, but was outbid by HonorHealth in a 2022 land auction and had to pivot.
Population in the northeast Valley is expected to jump by 100,000 people by 2030. “Arizona is still one of the most underserved states for hospital beds per capita,” Freeman says. “Many Banner patients today have to travel across the Valley for advanced care. The new Banner Scottsdale medical campus will make these services much more convenient for both current and future residents.” For more info, check out their website here: https://www.bannerhealth.com/banner-scottsdale
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