The Arizona Board of Regents voted unanimously in approval for the merger of the University of Arizona Health Network and its affiliates into Banner Health and its affiliates on Wednesday at the Old Main Silver and Sage Room.
“I see this as an incredible change, not just for the [UA] and for Banner Health, one of the consistently top-five ranked health networks in the nation,” UA President Ann Weaver Hart said. “It’s a wonderful confluence of a world-class medical school, a second medical school and a world-class health network that will shape the future of academic medicine for the 21st century.”
UAHN was established in 2011 with the goal of creating a statewide top-tier academic health center for Arizona.
However, it lacked the capital to renovate facilities, expand outpatient services and expand its market beyond Tucson, which is where Banner entered the picture.
Banner will spend or commit to spend $500 million on capital projects in Tucson to support the clinical enterprise during the five-year period beginning with the obtainment of zoning approvals for the replacement hospital or two years after its closing.
“Arizona needs to be and should be the very best place to get a college education,” said Mark Killian, Arizona Board of Regents chairman. “More importantly, we should have the best medical school in America, and I believe this agreement makes that a reality.”
Lease and Purchase Option Agreement
•Banner will purchase the land associated with University of Arizona Medical Center and additional lands for new hospital
•Banner will pay $59 million as pre-paid ground rent and $1 million for residual interests
•Banner will assume financial obligations and responsibilities of UAHN’s business and clinical operation and the faculty practice plan
Academic Affiliation Agreement
•30-year commitment in collaboration with Arizona-based non-profit healthcare provider to continue to provide healthcare services to Arizona, medical education and graduate medical education to UA students and research opportunities to UA’s faculty physicians
•Banner will maintain the UAMC as a faculty-based academic medical center to support the College of Medicine — Tucson
•Banner will transition Banner Good Samaritan Medical Center to a faculty-based academic medical center to support the College of Medicine — Phoenix
•For the first 15 years, Banner will fund $131.3 million in Core Services Funding and $20 million in annual Incremental Funding
Academic Enhancement Fund
•Sole purpose is to annually provide $20 million for academic enhancements, faculty recruitment and program development at the College of Medicine — Tucson and the College of Medicine — Phoenix
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