Banner Health
Banner Health is a nonprofit health care system headquartered in Phoenix, Arizona, founded in 1999 through the merger of Samaritan Health System and Lutheran Health System.[1] It operates as one of the largest nonprofit health systems in the United States, providing hospital care, outpatient services, and specialized medical programs across six states: Arizona, California, Colorado, Nebraska, Nevada, and Wyoming.[2] With over 55,000 employees, Banner Health manages 33 acute-care hospitals—including three academic medical centers—along with hundreds of health centers, clinics, and 50 urgent care locations, serving more than one million patients annually through integrated care models.[2] Its mission, "Making health care easier, so life can be better," emphasizes accessible, high-quality services, including innovative programs like the Banner Alzheimer’s Institute and Banner – University Medicine, a partnership with the University of Arizona established in 2015.[3] Banner Health's nonprofit status supports financial stewardship and community reinvestment, with facilities frequently recognized for clinical excellence, such as multiple hospitals ranked in the U.S. News & World Report's 2025–2026 Best Hospitals list.[4]Overview
Founding and Structure
Banner Health was established in 1999 as a nonprofit health system through the merger of Samaritan Health System, founded in 1911, and Lutheran Health System, founded in 1938.[5] This merger combined Samaritan's focus on clinical excellence in urban areas of California and Arizona with Lutheran's expertise in rural and Midwest healthcare, forming a unified entity dedicated to integrated care delivery.[5] Headquartered in Phoenix, Arizona, Banner Health operates as one of the largest nonprofit hospital systems in the United States, emphasizing accessible and high-quality care across diverse communities.[3] Its current scale includes 33 acute-care hospitals, along with related health entities such as outpatient facilities and services spanning six states: Arizona, California, Colorado, Nebraska, Nevada, and Wyoming.[2] The system serves more than 1 million patients annually through its extensive network.[2] As an integrated delivery network, Banner Health encompasses acute care hospitals, outpatient clinics, health plans like the Banner Health Network, and specialized medical groups such as Banner Medical Group.[2] This structure enables coordinated care from prevention to advanced treatment, supported by over 55,000 employees and a commitment to nonprofit principles that reinvest resources into community health initiatives.[2]Mission and Operations
Banner Health's mission is to make health care easier so life can be better, with a strong emphasis on delivering compassionate care, fostering innovation, and improving community health outcomes.[6] This guiding principle drives the organization's commitment to patient-centered services that prioritize accessibility and quality, ensuring that individuals and families receive support tailored to their needs across diverse communities.[3] The core values of Banner Health—customer obsessed, relentless improvement, courageously innovate, disciplined focus, foster accountability, and continuously earn trust—underpin its approach to operations and decision-making.[7] These values promote a culture of ethical, efficient, and innovative care delivery, where every action aligns with enhancing patient experiences and organizational excellence.[7] As a nonprofit health system, Banner Health operates an integrated care delivery model that encompasses preventive services, telemedicine, and academic medicine partnerships to provide comprehensive, accessible health care in both rural and urban settings across six states.[6] This model focuses on seamless coordination between primary, specialty, and emergency care, leveraging technologies like telehealth for remote consultations in areas such as behavioral health, cardiology, and neurology.[8] Key partnerships, including a longstanding collaboration with the University of Arizona for academic medicine, support research-driven advancements and training to elevate care standards.[9] With annual revenue of approximately $15.6 billion in fiscal 2024 and more than 55,000 employees, Banner Health maintains a broad operational scale dedicated to community reinvestment and equitable health access.[10][2]History
Origins and Formation
Banner Health traces its origins to two prominent nonprofit healthcare organizations: Samaritan Health System and Lutheran Health Systems. Samaritan Health System was founded in 1911 in Phoenix, Arizona, as the Arizona Deaconess Hospital, a small facility that evolved into Good Samaritan Hospital and eventually grew into the largest healthcare system in the state by the 1990s, operating a regional network of hospitals and services primarily in Arizona and California.[5][11] Lutheran Health Systems, established in 1938 in Fargo, North Dakota, as the Lutheran Hospitals and Homes Society, focused on community-based and rural healthcare, expanding from its Midwestern roots to operate facilities across multiple states in the West and Midwest by the late 20th century.[5][11] The organization emphasized accessible care in underserved areas, managing a portfolio of hospitals and long-term care facilities.[12] The formation of Banner Health occurred through the merger of these two systems, announced on September 1, 1999, that combined their assets and operations.[1][13] At inception, the new entity operated in 14 states with approximately 22,500 employees, 32 hospitals, and 2,882 beds, positioning it as one of the largest nonprofit health systems in the United States.[1] In the early post-merger period, Banner Health made strategic decisions to streamline its structure, including relocating its corporate headquarters from Fargo to Phoenix shortly after the merger to centralize operations in a key growth market.[14] By 2001, the organization divested non-core assets in six states—Iowa, Kansas, Minnesota, New Mexico, North Dakota, and South Dakota—to focus resources on high-growth regions like Arizona and Colorado, completing sales of hospitals and long-term care facilities to enhance operational efficiency.[13]Expansions and Mergers
In 2000, Peter S. Fine was appointed as president and chief executive officer of Banner Health, ushering in a strategic emphasis on growth and operations in the Southwest United States, including Arizona, California, Colorado, Nebraska, Nevada, and Wyoming.[5][15] By 2005, Banner Health expanded its footprint with the opening of Banner Estrella Medical Center in Phoenix, Arizona, a 214-bed facility equipped with advanced technology to serve the growing West Valley population.[5][16] That same year, the Second Century Project at North Colorado Medical Center in Greeley, Colorado, was completed, adding specialized infrastructure such as the CardioVascular Institute of North Colorado and an expanded Neonatal Intensive Care Unit to enhance cardiovascular and pediatric services.[5][17] In 2006, Banner Health launched the Banner Alzheimer’s Institute in Phoenix, Arizona, as its first Center of Excellence, dedicated to advancing dementia care, research, and prevention strategies for Alzheimer’s disease.[5][18] A significant acquisition occurred in 2008 when Banner Health purchased Sun Health Corporation for $316 million, integrating its operations in the West Valley of Arizona and renaming key facilities as Banner Boswell Medical Center, Banner Del E. Webb Medical Center, and Banner Sun Health Research Institute to bolster geriatric and research capabilities.[5][19] Further expansions followed in 2010 with the opening of Banner Ironwood Medical Center in San Tan Valley, Arizona, a 36-bed hospital designed for scalable growth in the Southeast Valley.[5][20] In 2011, Banner Health established the Banner MD Anderson Cancer Center through a joint venture with The University of Texas MD Anderson Cancer Center, opening a 120,000-square-foot outpatient facility on the Banner Gateway Medical Center campus in Gilbert, Arizona, to provide comprehensive cancer care and clinical trials.[5][21][22] By 2014, Banner Health entered negotiations with the University of Arizona Health Network, laying the groundwork for their integration by addressing debt relief, capital investments, and academic enhancements to form a statewide health organization.[5][23]Recent Developments
In 2015, Banner Health merged with the University of Arizona Health Network, creating Banner – University Medicine, which encompasses three academic medical centers in Tucson and Phoenix dedicated to integrating clinical care, research, and medical education.[24][5] This partnership enhanced Banner's capabilities in advancing medical innovation and training the next generation of healthcare professionals through collaborative programs with the University of Arizona.[25] In 2016, Banner Health experienced a significant cyberattack that compromised payment card processing systems and potentially exposed protected health information of approximately 3.7 million individuals across its facilities, leading to widespread operational disruptions including halted transactions and system shutdowns.[26][27] In response, the organization invested heavily in cybersecurity measures, including enhanced risk assessments and infrastructure upgrades, culminating in a $1.25 million settlement with the U.S. Department of Health and Human Services in 2023 for HIPAA violations identified during the investigation.[26][28] Between 2018 and 2020, Banner Health advanced its infrastructure with key projects, including the announcement and construction of Banner Ocotillo Medical Center in Chandler, Arizona, a 124-bed facility that opened on November 2, 2020, to serve the growing Southeast Valley population with comprehensive acute care services.[29][30] In 2019, the organization completed a $446 million, nine-story patient tower at Banner – University Medical Center Tucson, adding 228 private patient rooms, 20 operating rooms, and advanced diagnostic capabilities to improve patient outcomes and support academic missions.[31][32] During the 2020 COVID-19 pandemic, Banner Health's facilities, including Banner Fort Collins Medical Center and Banner Payson Medical Center—which had been integrated into the system in 2015—played critical roles in the response, managing surges in patient volumes, implementing testing and isolation protocols, and addressing staffing and supply challenges across Northern Colorado and rural Arizona.[5][33] These centers contributed to Banner's broader efforts, which included expanding capacity for respiratory care and community vaccination drives amid the crisis.[34] From 2023 to 2025, Banner Health expanded its primary care presence through the acquisition of seven Village Medical clinics and two walk-in sites in Northern Colorado on May 1, 2025, adding 46 providers and enhancing access to integrated care in areas like Fort Collins and Loveland.[35][36] In April 2024, long-serving CEO Peter S. Fine retired after 24 years, with Amy Perry succeeding him as president and CEO to continue guiding the system's growth and innovation.[37] Later in May 2025, Banner broke ground on a new medical campus in Scottsdale, Arizona, including the Banner Health Center plus for multispecialty care.[38] In October 2025, the system completed a major expansion at Banner Estrella Medical Center in Phoenix, enhancing capacity and services, and opened a new multispecialty medical center in downtown Goodyear, Arizona.[39][40] Concurrently, the organization has continued post-pandemic enhancements to its telemedicine infrastructure, incorporating tools like eICU remote monitoring and virtual visit platforms to improve chronic disease management and rural access, as outlined in recent community health needs assessments.[41][42] On October 24, 2025, a report marked the tenth anniversary of the University of Arizona partnership, noting over $59 billion in economic impact from collaborative health care, research, and education initiatives.[24]Facilities and Services
Hospitals and Locations
Banner Health operates 33 acute-care hospitals across six states, with the largest concentration in Arizona serving as its primary hub. The system's facilities are strategically distributed to address both urban and rural healthcare needs, particularly in underserved areas where many hospitals function as the sole community providers. This geographic emphasis supports Banner Health's commitment to accessible care in regions spanning the Southwest and Midwest.[2]Arizona
Arizona hosts the majority of Banner Health's hospitals, exceeding 20 facilities that form the core of its operations. These include major academic and community hospitals concentrated in the Phoenix metropolitan area and extending to southern Arizona. Notable examples are:| Hospital Name | Location | Bed Capacity | Key Notes |
|---|---|---|---|
| Banner - University Medical Center Phoenix | Phoenix | 678 | Level I trauma center and academic medical facility.[43] |
| Banner - University Medical Center Tucson | Tucson | 548 | Academic medical center affiliated with the University of Arizona.[44] |
| Banner Estrella Medical Center | Phoenix | 317 | Full-service community hospital.[45] |
| Banner Gateway Medical Center | Gilbert | 286 | Community hospital with advanced diagnostic capabilities.[46] |
| Banner Del E. Webb Medical Center | Sun City West | 391 | Senior-focused community hospital.[47] |
| Banner Boswell Medical Center | Sun City | 410 | Community hospital serving the northwest Phoenix suburbs.[48] |
| Banner Baywood Medical Center | Mesa | 337 | Comprehensive community hospital.[49] |
| Banner Heart Hospital | Mesa | 111 | Specialized cardiac care facility.[50] |
| Banner Ocotillo Medical Center | Chandler | 94 | Community hospital in the southeast Valley.[51] |