University Physicians, the 325-physician multispecialty medical group at the University of Arizona School of Medicine, will take over a 25-year lease to run the 114-bed Kino Community Hospital in Tucson starting June 15.
The physicians group, which has been in charge of hospital operations for nearly three months, reached an agreement approved by the county board of supervisors Tuesday.
The hospital will add services, equipment and staffing as Pima County prepares to permanently turn over the job of running the hospital to a not-for-profit corporation.
Since the supervisors approved the temporary agreement in early February, University Physicians has resumed several medical services, including pulmonary, urology and kidney surgery.
Last July 1, the county scaled back Kino to provide only psychiatric care, emergency treatment and outpatient clinics because of a series of recurring budget deficits.
The lease requires the county to meet Kino's expected fiscal year 2003-04 operating deficit of $32 million and pay a series of decreasing sums over the next decade before the county subsidy drops to zero by 2014.
The subsidy will be $25 million for fiscal 2004-05, $20 million for 2005-06 and $8 million for 2012-13.