Image Source: BR Healthcare
The Maricopa City Council has tabled a decision on a proposed comprehensive medical campus development planned for the southeast corner of West Bowlin Road and North John Wayne Parkway following a presentation by BR Healthcare Development. The project would feature a multi-phase hospital, medical office buildings, and potentially residential facilities to support medical staff.
During the last council meeting, AJ Thomas, President of BR Healthcare Development, presented vision renderings of the campus that would serve to address what he described as “a deficiency for the city of Maricopa for Primary Care, Specialty Care, and inpatient care.” The council ultimately voted to table the three land sale agreements that would have moved the project forward, marking the second time these items have been tabled due to concerns about contract guarantees.
The proposal has been delayed as council members expressed concerns about the lack of contractual language ensuring the completion of Phase Two, which includes advanced medical services. Currently, the contract does not include binding requirements or enforcement mechanisms that would compel the developer to complete Phase Two, with the city having no specified recourse if these advanced medical services are not built.
Two-Phase Development Raises Questions
The proposed development would be built in phases, with the first phase including a minimum 24-bed hospital with emergency department services and imaging capabilities including MRI, CT, and X-ray. A medical office building ranging from 30,000 to 80,000 square feet with an ambulatory surgery center would also be part of the initial development.
The second phase would introduce more advanced services, including a catheterization lab and other unspecified specialized medical services that would be determined based on community needs.
Councilmember AnnaMarie Knorr expressed significant concerns about the lack of contractual guarantees for the completion of phase two.
“I would feel a lot more comfortable if this contract required the phase two and we had recourse so that we knew we were getting a full service hospital,” Knorr said during the meeting. “The only guarantee we have under this contract is an ER Hospital which are the services that already exist in Maricopa today.”
Councilmember Eric Goettl took a more optimistic view, expressing enthusiasm for the project while acknowledging the council’s cautious approach. He reminded everyone about the contract specifications while emphasizing his support for the development.
“We want the very best for our residents here,” Goettl stated. “The second phase of the hospital will include specialty services including a cath lab and other Advanced Medical Services based on operational needs within the community.” While Goettl highlighted these phase two features, the contract does not contain binding requirements that would guarantee their completion. Despite this limitation, he maintained that the council was excited about bringing a significant healthcare facility to Maricopa.
Mayor Smith acknowledged the long-standing efforts behind the project, stating, “This has been something we’ve been dialoguing [about] for two, three years in terms of the need in our community for a substantial hospital and so I think it’s been well discussed and well understood.”
Hospital Needs to Scale with Growing City
Council members emphasized the need for a facility that could grow with Maricopa’s expanding population. Councilmember Bob Marsh specifically questioned the scalability of the proposed hospital.
“The city of Maricopa is on a path to grow to 250,000 people shortly then 500,000 and even a million possible,” Marsh noted. “Can this Hospital scale to grow with the city?”
Thomas provided a detailed response about how healthcare facilities typically evolve, assuring the council that planning for expansion was standard practice in healthcare development.
Thomas emphasized that the development would prioritize medical facilities over residential components, ensuring that healthcare infrastructure comes first. “The residential portion you saw will never be the first part that we build,” he explained, clarifying that housing for medical staff and other potential residential units would only follow once the hospital was operational and expanding.
He also addressed the project’s flexibility, noting that hospital operators had expressed interest in scaling the facility to meet long-term community needs. “One of the operators actually asked, ‘What if there is just one hospital on the entire site?’ That could be a 120-bed hospital,” Thomas stated, suggesting that the site could accommodate a significantly larger facility depending on demand and operator commitment.
Thomas provided a reference point, noting that 120 beds would be comparable to Banner Ocotillo Hospital. He emphasized that healthcare planning always accounts for expansion.
“In health care we from a planning side always plan for expansion, so the answer is absolutely yes considering the city growth,” Thomas continued, explaining that the residential portion of the project could “scale back to accommodate the growth for the hospital expansion” if necessary.
Thomas also referenced Sonoran Health in North Phoenix as an example of a hospital that started at a similar size to what’s proposed for Maricopa and then expanded to three times its original size within four to five years. He noted that typically the first two years focus on stabilizing operations before expansion begins.
Land Price Debate
The purchase price of the city-owned land also emerged as a point of contention during the meeting. The three parcels would be sold for approximately $3.13 million, but Councilmember Knorr questioned whether the city was getting fair market value.
“At a minimum this land is worth at least a dollar ten more a square foot than what we’re in contract to sell it for,” Knorr stated, noting that she had researched comparable properties. She also expressed concern that the city had not conducted a current appraisal of the property.
Councilmember Goettl countered that the land had been designated for healthcare purposes decades ago, and the current price still represented a “substantial profit” for the city.
“We’re not necessarily selling this land at deficit in fact I would argue a substantial profit that would then be helpful to continue other things too,” Goettl said.
Mayor Smith emphasized the value of the services the development would bring to the community, while Vice Mayor Henry Wade supported having “accurate and confirmed information” before proceeding with the sale.
Addressing Healthcare Spending Leakage
During his presentation, Thomas highlighted a compelling statistic about healthcare spending leaving Maricopa.
“The city of Maricopa is sending almost a billion dollars out in healthcare to other cities,” Thomas said, emphasizing that the outbound healthcare spending makes Maricopa an attractive location for hospital operators.
Thomas explained that BR Companies is in discussions with “all the four major Hospital Systems in the state” to operate the facility, though specific operators couldn’t be named due to non-disclosure agreements.
Call for Full Service Hospital
Pinal County Supervisor Rich Vitiello, speaking as a Maricopa resident, emphasized the need for comprehensive healthcare services.
“I am 100% for a full service hospital,” Vitiello said. “We need a cath lab, we need a surgical center, we need to have babies able to be born here in the city.”
He echoed concerns about contract guarantees and potential financial liability for the city if the development stalled after beginning construction.
Looking Forward
With the council unanimously voting to table the purchase agreements, the future of the medical campus remains uncertain. While city staff may discuss concerns with BR Healthcare Development, it is unclear if any changes will be made to the contract before the proposal is reconsidered by the council.
The project represents a significant potential investment in Maricopa’s medical infrastructure and could help keep healthcare dollars within the community. Whether and when the project moves forward will depend on resolving council members’ concerns about guarantees for the more advanced services in the second phase of the proposed facility, as well as addressing questions about whether the city is receiving fair market value for the land.
