“Without Placer, we would have relied on anecdotal assumptions that city residents wouldn’t travel to the suburbs. Placer proved otherwise, allowing us to expand in an already thriving market at a 12.5% lower cost and a year faster than if we had opened our new facility in the city.”
-- Troy Freeman, Vice President of Real Estate Management
The Challenge
Banner Health seeks to optimize expansion in currently-serviced metro
Banner Health, headquartered in Phoenix, AZ, is a leading nonprofit health system with over 55,000 employees across six states. Known for its commitment to innovative healthcare solutions, Banner operates 33 hospitals and numerous specialized facilities. Keen to grow its services in the West, Banner Health turned to Troy Freeman, Vice President of Real Estate Management and responsible for site selection and expansion efforts, to determine whether to expand its existing suburban facility or invest in a new healthcare site in a larger, more expensive city nearby. Local experts suggested that residents from the large city wouldn’t travel to the suburban location for healthcare. How could they determine the most viable solution?
The Solution
Placer data validates market behavior and guides strategic decision-making
Eager to put data behind such significant decisions, the team used Placer’s trade area reports and visitor origin analysis to test the anecdotal reports that patients would not travel from the larger city to visit a new suburban clinic. They focused their analysis on two key areas:
1. A trade area analysis for their existing, suburban clinic
2. Visit trends for a competitor in the same suburban market
Using Placer’s trade area report, the team studied visit traffic for Banner’s existing facility in the suburban market, specifically focusing on the zip codes that patients came from. The insights were positive: Placer’s trade area map revealed that 80% of traffic to the existing suburban clinic originated from the larger city. What’s more, Placer showed that more than 65% of visitors traveled at least 5 miles to get to the clinic, disproving the belief that city residents wouldn’t travel to the suburban area for healthcare services.
Learn more about Trade Area
Furthermore, Placer’s Visitor Journey report indicated that patients at the old location already visited the town center for groceries and coffee before and after their clinic appointments. By relocating the clinic to the town center, the team anticipated increased visibility, community awareness, and patient convenience. These insights gave the team the confidence to move forward with the relocation.
Learn more about Visitors by Origin
With these insights, Banner identified the optimal strategy: expand its footprint in the suburban market, not the larger metro nearby, with a new, 15,000-square-foot space near the existing clinic.
The Outcome
SUCCESS: Banner Health selects new site, shaves 12 months off launch and secures 12.5% lower rent
By relying on Placer’s location intelligence, Banner Health confidently expanded its suburban facility, ensuring continued service to patients from both the suburban area and the nearby city. The decision to stay in the suburban area brought 12.5% lower cost of rent and saved 12 months of project delays associated with finding or building a site in the more expensive and space-constrained city.
Holistically, the data-driven approach allowed Banner to optimize site selection, debunk local myths about patient travel patterns, and provide an additional 15,000-square-foot space to serve primary and urgent care needs while strengthening its presence in a high-potential market.
