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Institutions & events Still in use Since 1999

Banner Health: Arizona's Biggest Hospital System and the Scottsdale Gap

Banner Health is the nonprofit hospital system that dominates Arizona: 33 hospitals in six states, more than 55,000 employees and the title of the state's largest employer. It has almost no footprint in Scottsdale, where HonorHealth and Mayo own the map, until 2027, when Banner opens the first phase of a campus at Hayden Road and the Loop 101.

Illustration for Banner: institutions & events

In one line

Banner: Banner Health, the Phoenix-based nonprofit that is Arizona's largest private employer and biggest hospital system. 'Go to Banner' means one of its 30-plus hospitals, almost none of them in Scottsdale, which is why locals here say 'Osborn' or 'Shea' instead.

Also called Banner Health, Banner Desert, Banner Thunderbird, Banner University, Banner Scottsdale.

The 30-second version

  • Banner Health was formed on September 1, 1999, by the merger of Phoenix-based Samaritan Health System and Lutheran Health Systems of North Dakota.
  • At the merger the system had 32 hospitals and 22,500 employees in 14 states; today it has 33 hospitals in six states and more than 55,000 employees.
  • Banner is Arizona's largest employer and reported $14.1 billion in revenue in 2023, with headquarters in Phoenix.
  • The Banner hospitals nearest Scottsdale are Banner Desert in Mesa, Banner University Medical Center in central Phoenix and Banner Thunderbird in Glendale.
  • Banner bought 48 acres at Hayden Road and the Loop 101 in March 2023 and broke ground May 22, 2025, on a $750 million campus opening in early 2027.

Status

Still in use

In official or everyday use today.

On record since

1999

Who said it first

Samaritan Health System and Lutheran Health Systems, naming the company their merger created in 1999

What it means

Across most of metro Phoenix, Banner is the word for the hospital. “They took him to Banner” needs no further explanation in Mesa, Glendale or Gilbert, because Banner Health, the Phoenix-based nonprofit, runs the hospital in each of them and in a dozen other Valley cities. It is the largest private employer in Arizona, with more than 55,000 workers, and the largest hospital system, with 33 hospitals in six western states.

Scottsdale is the exception, and the exception is the point of this entry. Here “the hospital” means HonorHealth, which grew out of the 1962 Scottsdale Memorial Hospital on Osborn Road and runs the three hospitals inside the city limits; and “Mayo” means the Mayo Clinic campus on Shea Boulevard. You will hear Banner in Scottsdale mainly from people whose insurance network is Banner, from south Scottsdale residents who use Banner Desert in Mesa, and, since 2023, in the news about the campus Banner is building at Hayden Road and the Loop 101. The site’s guides to HonorHealth and Mayo Clinic in Arizona cover the systems that actually run Scottsdale’s medicine.

Where you’ll meet it

On freeway signs for Banner Desert, Banner Gateway and Banner University Medical Center; on the insurance card; in the north Scottsdale construction news along Hayden Road near Mayo Boulevard; and in any Valley-wide conversation about jobs, where Banner comes up first.

Where the word came from

The name is a corporate invention from 1999, and it replaced two older ones. Samaritan Health System had been the Phoenix name in hospitals for most of the century: Good Samaritan downtown, Desert Samaritan in Mesa, Thunderbird Samaritan in Glendale. Lutheran Health Systems, based in Fargo, North Dakota, ran small hospitals across the rural West and Midwest. On September 1, 1999, the two nonprofits announced a merger, and the combined company needed a name that belonged to neither. They chose Banner, a word with no history and no denomination, and put the headquarters in Phoenix. At the merger the system had 32 hospitals, 2,882 beds and 22,500 employees in 14 states.

The old names were retired hospital by hospital, so Desert Samaritan became Banner Desert Medical Center and Thunderbird Samaritan became Banner Thunderbird. Over the next two decades Banner sold or closed most of the far-flung Lutheran hospitals, concentrated on Arizona and a few neighboring states, and grew by building (Banner Gateway in Gilbert, Banner Estrella in the West Valley), by partnership (the Banner MD Anderson Cancer Center in Gilbert, opened in 2011) and by acquisition. The flagship, Banner University Medical Center Phoenix in central Phoenix, is a 746-bed teaching hospital. Revenue reached $14.1 billion in 2023.

Scottsdale stayed outside the map. The city’s hospitals were Scottsdale Memorial’s, which became Scottsdale Healthcare and then HonorHealth, and Mayo arrived in 1987. Banner’s presence here has been outpatient clinics, urgent cares and a behavioral health hospital, not a general hospital.

What it is not

Banner is not HonorHealth, and the two are not affiliated; they are competing nonprofits. Banner is also not the University of Arizona, though its Phoenix and Tucson flagships carry “University” in their names through an academic partnership. And “Banner Scottsdale,” which you will start hearing, is a campus under construction, not an open hospital.

The fine print

The Scottsdale project is the one piece of Banner news that matters locally, and its dates are easy to garble. Banner completed the purchase of a 48-acre parcel at the southwest corner of the Loop 101 and Hayden Road in March 2023 and announced a two-phase campus it values at more than $750 million in private investment. Phase one is a Banner Health Center plus, nearly 120,000 square feet of ambulatory surgery, imaging, pharmacy, multi-specialty clinics and Banner MD Anderson oncology services; it broke ground on May 22, 2025, and Banner expects to open it in early 2027. Phase two is Banner Scottsdale Medical Center, a full-service hospital of roughly 350,000 square feet with 106 beds at first build-out and room to grow toward 300; Banner filed its conditional use permit application with the city in July 2025, and the hospital’s opening date depends on that approval and on construction. Banner puts the eventual job count at about 2,500.

Why it took this long is the interesting question, and nobody at Banner has answered it in print. The plausible reading: Scottsdale was already served by two strong systems, its growth was slower than the East and West Valleys’, and the open land was in the north, which is where Banner finally bought. The site sits across the freeway from the Airpark employment base and near HonorHealth Thompson Peak and Mayo’s Shea campus, which tells you whose patients Banner expects to compete for.

The numbers above come from Banner’s own releases and from Wikipedia’s summary of them; Banner’s press materials describe the project as “$750 million-plus,” while a 2023 Scottsdale Progress report put it at $400 million, reflecting the earlier, smaller plan.

The lexicon entries this one leans on.

Where you'll meet it on this site

The guides that carry the full story.

Banner by the numbers

1999

Formed

33 in six states

Hospitals

55,000+

Employees

Early 2027 (phase one)

Scottsdale campus opens

Questions people actually ask

Is there a Banner hospital in Scottsdale?

Not yet, as of 2026. Banner has clinics and urgent cares with Scottsdale addresses, but its full hospitals are in Phoenix, Mesa, Glendale, Gilbert and beyond. A Scottsdale campus at Hayden Road and the Loop 101 broke ground in May 2025; its outpatient first phase is due in early 2027 and a hospital is planned to follow.

Which Banner hospital is closest to Scottsdale?

It depends on where in Scottsdale you are. Banner Desert Medical Center in Mesa is closest to south Scottsdale, Banner University Medical Center Phoenix is closest to the Camelback corridor, and Banner Thunderbird in Glendale serves the far north and west. Most Scottsdale residents are closer to an HonorHealth hospital than to any of them.

Why is Banner Health so big in Arizona?

It inherited Samaritan Health System, which had built or absorbed many of metro Phoenix's hospitals since the early 1900s, and then kept acquiring. The 1999 merger with Lutheran Health Systems added rural hospitals across the West, and later deals made Banner the state's largest employer, with more than 55,000 workers.

What is the difference between Banner and HonorHealth?

They are separate nonprofit systems and competitors. HonorHealth grew out of Scottsdale Memorial Hospital and runs the hospitals inside Scottsdale: Osborn, Shea and Thompson Peak. Banner grew out of Phoenix's Samaritan hospitals and is far larger statewide, but it has had no Scottsdale hospital.

Where this comes from

The record behind the entry.

Vernacular & LexiconThe ThunderbirdsHayden RoadThompson PeakShea BoulevardThe Shea CorridorThe Camelback Corridor

Facts checked: October 2, 2026 • Curated by the Scottsdale.tips editors • Plain-English explainer. Usage changes faster than the record; corrections are welcome.

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