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Banner, UA Get Final ABOR Approval for Merger

The University of Arizona Medical Center University Campus is the flagship hospital of the $1B-plus University of Arizona Health Network, which will be acquired by Banner Health in a pact that will combine the Tucson network with Arizona’s largest healthcare network. Photo credit: University of Arizona Health Net.

By Angela Gonzales for Phoenix Business Journal

Banner Health, the state’s largest hospital system, is about to become even bigger after the Arizona Board of Regents Jan. 28 gave the Phoenix-based nonprofit approval to acquire the University of Arizona Health Network.

This final vote allows Banner to enter an academic affiliation agreement with UA and acquire the UA Medical Center and employ its non-academic personnel.

The deal requires that the money will be used only for capital expenditures and operating expenses of the UA College of Medicine-Tucson and to fund UA’s $39M contribution to an Academic Enhancement Fund.

Banner also will provide around $261M toward a $300M Academic Enhancement Fund to provide ongoing funding for academic enhancements, faculty recruitment and program development at the medical schools.

The definitive agreement is expected to be signed by Jan. 30 and the final deal is expected to close Feb. 27.

Read more at Phoenix Business Journal