The Phoenix Business Journal is reporting the proposed merger between Phoenix-based Banner Health — the state's largest health system — and University of Arizona Health Network in Tucson is taking longer than expected.
The goal was to close the deal by the end of 2014, but there are more details to hammer out.
According to a June 26, 2014, Arizona Board of Regents agenda, Banner has agreed to pay $300 million to establish the Academic Enhancement Fund, fund another $146 million to pay off the University of Arizona Health Network's long-term debt and will commit to $500 million for capital projects in Tucson to support the clinical enterprise during five years.
The Arizona Board of Regents — which oversees the three state universities, including UA — requested the completed agreement the week of Jan. 26 so ABOR can vote on it at its next board meeting.
Banner Health President and CEO Peter Fine wrote a letter to employees last week, letting them know he expects the deal to close Feb. 27.
"Immediate positive impacts of this new closure date include an extended deadline for faculty physician benefits enrollment as well as extended deadlines for work product from transition teams," he told employees in his letter.
Once the deal is signed by ABOR, Banner and UA's Health Network will sign the agreement, Fine said.
"The level of detail to prepare documents for the closure of a 30-year agreement is significant, and we're going to take the time necessary to do this correctly," Fine told employees in his letter.