$400 Million Hospital and Cancer Center to Be Built in Scottsdale


Banner Health is finalizing the purchase of approximately 48 acres of land on the southwest corner of Hayden Rd. and the Loop 101 freeway to build a new, comprehensive medical center and support services in the Northeast Valley of metro Phoenix.

With an investment of more than $400 million, the project will include an acute care hospital, adjacent medical office building and a cancer center. Banner Scottsdale Medical Center will be a full-service, destination hospital with a focus on key areas of distinction for Banner, including cardiovascular, orthopedics, cancer and neuroscience programs. This new, digitally enabled medical center will provide seamless integration with Banner’s ambulatory and virtual sites of care, furthering Banner’s mission of making health care easier so life can be better. The project complements Banner’s comprehensive, market-wide network and brings Banner services and options to those who work and live in the Northeast Valley.

The Northeast Valley population is projected to grow by more than 17% in the coming decade. As part of this growth, it is expected that Banner’s insurance products will expand in the region as well, with more covered lives residing in the area. Banner is committed to expanding services ahead of this growth to ensure easy access to care for Scottsdale residents and Banner plan members. Banner’s health insurance division currently has approximately 50,000 members who reside in the Northeast Valley. Many of these members participate in value-based health plans that require convenient and affordable care.

“Our strategic growth plan is focused on convenience and access, with facilities close to home for our patients, members and their families,” said Scott Nordlund, chief strategy and growth officer for Banner Health. “Scottsdale is a natural growth area for Banner, and we are committed to ensuring our patients and health plan members have care close to where they work or live when they want and need it.”

The four-story, 384,000-sq. ft. Banner Scottsdale Medical Center is expected to open in 2026 with 106 licensed patient beds and 20 observation beds, along with shelled space for expansion as the community grows. The medical office building will house physician offices, specialty care and other clinical services. Banner has partnered with SmithGroup for the project design and Okland Construction as the contractor.

This medical campus project will create high-quality jobs and employment opportunities in Scottsdale, with 1,000 health care related jobs over the next five years and 2,500+ jobs at full development. Construction and ancillary jobs will also be associated with the facility development.

Banner’s existing presence in the market includes primary care clinics, specialty clinics, urgent care locations, outpatient imaging, physical therapy centers and the Banner Behavioral Health Hospital in Scottsdale, which has provided inpatient and outpatient behavioral health services to the community for more than 40 years.

Banner Health is the leading health care provider across metro Phoenix, recognized for expanding existing and building new hospitals and ambulatory care sites to meet health care needs as communities grow. Recent projects include:

  • Opened Banner Ocotillo Medical Center in Chandler in November 2020, which was Banner’s 13th hospital in the metro Phoenix market.
  • Opened the new women’s tower on the Banner Desert Medical Center campus to serve women from childbirth to senior care.
  • Opened a new patient tower on the Banner Gateway Medical Center campus to expand cancer care services and women’s health care.
  • Opened Banner Health Center plus in the Arcadia neighborhood at 44th St. and Camelback.
  • Soon to open Banner Sports Medicine Scottsdale, a comprehensive sports medicine and high-performance center for athletes of all ages and skill levels, from youth to professional.
  • Announced plans for a new hospital in Buckeye, Ariz.

Banner Health is one of the largest, secular nonprofit health care systems in the country. In addition to 30 acute-care hospitals, Banner also operates an academic medicine division, Banner – University Medicine, and Banner MD Anderson Cancer Center, a partnership with one of the world’s leading cancer programs, MD Anderson Cancer Center. Banner’s array of services includes a health-insurance division, employed physician groups, outpatient surgery centers, urgent care locations, home care and hospice services, retail pharmacies, stand-alone imaging centers, physical therapy and rehabilitation, behavioral health services, a research division, and a nursing registry.

Speak Your Mind

In Business Dailies

Sign up for a complimentary year of In Business Dailies with a bonus Digital Subscription of In Business Magazine delivered to your inbox each month!

  • Get the day’s Top Stories
  • Relevant In-depth Articles
  • Daily Offers
  • Coming Events