Five Things to Know About the UA Health Network, Banner Agreement

Five Things to Know About the UA Health Network, Banner Agreement

By University Relations - Communications
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Last week, the UA Health Network and Banner Health announced a new initiative that is expected to transform the health-care landscape in Arizona.

An agreement between the two organizations, to be finalized by the fall, is expected to generate about $1 billion in new capital, academic investments and other benefits to the UA and the community.

Here are a few things to know about the agreement:

1. The merger was launched to optimize and revolutionize medical training, research and patient care.

UAHN and Banner will unite to create a statewide health system that provides superior care for Arizona residents, officials who signed the agreement said. The partnership between UAHN and Banner will allow the UA Medical Center to expand its capabilities for complex academic and clinical programs, such as transplantation, neuroscience, geriatrics, pediatrics and genomics-driven precision health programs.

"In this incredibly rapidly changing and very tumultuous health care environment, clinical partners are absolutely imperative for success moving forward," UA President Ann Weaver Hart said during a special meeting held last Thursday.

"These 30 years are going to be among the most transformative in health care in America compared to what we have experienced in the last century. This is extremely exciting, and I hope you can feel our commitment," Hart said. "We are going to make the future. We are not going to be recipients of a future made by others."

2. The UA will retain control and oversight over the Tucson and Phoenix medical schools.

Hart and Joe G. N. "Skip" Garcia, senior vice president for health sciences at the UA, will continue to oversee the UA College of Medicine campuses in Tucson and Phoenix.

The merger agreement will secure and sustain a lasting relationship with and commitment to the UA, which will be anchored by an academic division within Banner.

The UA Medical Center, Banner Good Samaritan Medical Center and the faculty practice plan will support the growing needs of the UA's two medical schools. The agreement will result significant capital improvements and enhancements to the academic medical center in Tucson. Also, the Banner Good Samaritan Medical Center will serve as a faculty-based academic medical center in support of the Phoenix medical school.  

3. The merger is expected to help the state attract and retain high performing physicians and talented students.

The transition will result in a $300 million endowment, which will provide a $20 million-per-year revenue stream to advance the UA's clinical and translational research mission.

Also, the agreement is expected to result in the Phoenix and Tucson medical centers training more physician specialists and allied health professionals while providing a comprehensive platform for developing physician-scientists.

"When these respected organizations unite, the potential for delivering top-tier academic medicine throughout the state, recognized nationally, becomes a reality," said Steve Lynn, UAHN chairman of the board, during Thursday's meeting.

4. The transition will result in sizable financial support from Banner.

Investment opportunities exist in a number of areas, including the elimination of debt burdening at UAHN, which is projected to be $146 million.

Resources will be provided to improved hospital infrastructure, including $500 million within five years to expand and renovate the medical center, and build new facilities – as appropriate – such as a major, multi-specialty outpatient center to be constructed in Tucson

5. Employee benefits are not expected to be interrupted during the merger.

The 6,300 employees who work for UAHN will transition into being employees of Banner Health, which is the state's largest private employer with more than 37,000 workers. UAHN employees are guaranteed that they will be retained at their current base salaries for at least six months, retaining their seniority for employee benefit purposes.

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