The Arizona Board of Regents and the Tucson-based UA Health Network board endorsed a Banner Health partnership with the University of Arizona colleges of Medicine in Tucson and Phoenix, as well as Banner’s acquisition of the independent UA Health Network and its two Tucson-based teaching hospitals.
Banner Health is prepared to invest nearly $1 billion as part of the agreement. Banner Health, UA Health Network, and the University of Arizona still must finalize the details of the agreement, which will have a major impact on Arizona’s health care, the two UA medical schools and research statewide. Officials hope to complete negotiations by the fall.
The draft agreement says Banner would eliminate the network’s $146 million debt, purchase the UA Medical Center land for $21 million, and invest $500 million into the medical center and build new facilities as needed within five years. The plan also includes a $300 million payment from Banner to create an endowment to support clinical and translational research.
The UA College of Medicine began in Tucson in 1967 and added a Phoenix campus in 2006. The two colleges became separately accredited in 2012. The UA partnership with Banner calls for a 30-year academic affiliation agreement that would include transitioning Banner Good Samaritan Medical Center in Phoenix into a faculty-based academic medical center to support the UA College of Medicine-Phoenix.
For more information:
“UA Health Network board, regents OK Banner partnership,” Arizona Daily Star, 6/27/14
“State board endorses UA Health Network, Banner Health deal,” Arizona Republic, 6/26/14
“Banner Health to buy UA hospitals in Tucson, expand geographical footprint,” Phoenix Business Journal, 6/25/14