Phoenix-based Banner Health's $1 billion acquisition of the University of Arizona Health Network, Tucson, is expected to close on Jan. 31, the health system's CEO said in a memo to employees earlier this week.
Final agreements are expected to be signed during the week of Jan. 12, according to a memo written by Banner President and CEO Peter Fine. Initial terms of the deal stipulated that Banner will acquire the University of Arizona Medical Center and its south campus; UAHN's faculty practice, University Physicians Healthcare; and UAHN's three health plans.
The deal also will make the University of Arizona and its medical school Banner's exclusive academic partner.
In the memo, Fine writes that Banner officials have combed through 20,000 pages of due diligence materials, gained community input and negotiated state and federal regulations.
“As we move closer to completing this merger, I am even more convinced that this new organization will transform healthcare in Arizona,” Fine wrote.
University of Arizona President Ann Weaver Hart and UAHN CEO Dr. Michael Waldrum sent memos to employees this week to notify them of the expected closing date, according to an article in the Arizona Daily Star. Quotes in the Daily Star article suggest that Waldrum's memo apparently uses nearly identical language to Fine's.
UA officials didn't return a request for comment.
A recent study by the Institute of Medicine suggested that academic medical centers need to build better partnerships inside and outside of academia if they want to continue to be innovative.
Modern Healthcare explored the possibility that academic medical centers could become part of the wave of consolidation sweeping healthcare in an in-depth report this year after the Banner-UA merger was announced.
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