Banner Health, University of Arizona Health Network Launch Effort to Create Statewide Organization

The University of Arizona Health Network and University of Arizona, both based in Tucson, have executed a principles of agreement document with Phoenix-based Banner Health to create a statewide healthcare organization in Arizona.

The statewide organization would be Arizona's largest private employer, with more than 37,000 employees, according to a news release.

"We are impressed by the thoughtfulness and thoroughness that has driven the UAHN board process in determining how best to meet the future needs of those they serve," Arizona Board of Regents Chair Rick Myers said in the release. "In addition, this agreement strengthens and can accelerate the discovery efforts of our Colleges of Medicine in Tucson and Phoenix, leading to medical advances." 

The proposed transaction is expected to generate approximately $1 billion in new capital and academic investments.

"With healthcare here in Arizona and across the nation facing new challenges and opportunities every day, this agreement will allow the Arizona Health Sciences Center and the entire UA to advance our mission to provide education, conduct research and enhance patient care that will transform healthcare at the state and national level, said Ann Weaver Hart, president of the University of Arizona, in the release.

The organizations will now work towards final definitive agreements. The agreements are expected to be completed and signed by September, and the transaction is expected to close a few months after the signing.

More Articles on Healthcare Industry Partnerships:

National Jewish Health, Saint Joseph Hospital Strike Joint Operating Agreement
Geisinger, Holy Spirit Health System Sign Definitive Agreement
9 Recent Hospital Transactions and Partnerships