Sun Health, a two-hospital system in Phoenix, has signed a letter of intent to merge with Banner Health, the not-for-profit community systems said.
The asset merger will add about $600 million to Banner Healths $3.3 billion in annual revenue, said Peter Fine, president and chief executive officer of Phoenix-based Banner Health. Sun Health serves a very unique community in the northwest (Phoenix) market that we dont serve now, Fine said.
Sun Health has 601 beds on two campuses, as well as a research institute, rehabilitation center, Alzheimer's-care residence and wellness center and employs 4,500 workers. Banner Health has 2,525 beds on eight hospital campuses and more than 20,500 employees.
Fine said he did not expect any consolidation of services or employee downsizing in the merger.
Sun Health Foundation and Sun Health Properties will remain independent and continue to encourage charitable giving and financial support to the Sun Health hospitals. The two hospitals, Sun Health Boswell and Del E. Webb, will carry the Banner Health brand.
Sun Health, founded in 1966, approached Banner Health with the merger idea and saw it as an opportunity to improve access to capital and quicker adoption of technology, such as electronic health records, said Sun Health President and CEO Leland Peterson.
The merger is expected to close in six to nine months. -- by Rebecca Vesely
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