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2015 RED Award logo

RED Awards 2015: Best Healthcare Project

On Feb. 26, AZRE hosted the 10th annual RED Awards reception at the Arizona Grand Resort & Spa in Phoenix to recognize the most notable commercial real estate projects of 2014 and the construction teams involved. RED Award trophies were handed out in 10 project categories, to six brokerage teams and safety, subcontractor, architect, general contractor and developer of the year awards were also presented. AZRE also recognized Sunbelt Holdings President and CEO John Graham with a lifetime achievement award. Click here to view all 2015 RED Awards Winners.

BMDACC-2-Courtyard-35Banner MD Anderson Cancer Center Phase II Clinic Expansion

Developer: Banner Health
Contractor: DPR Construction
Architect: HKS, Inc.
Size: 110,904 SF
Location: Gilbert
Completed: January 2014

After completing the stunning first phase of the Banner MD Anderson Cancer Center, DPR Construction and HKS designed and built phase II, which consisted of a three-level expansion that houses linear accelerator vaults, radiation oncology, CT simulator, exam and infusion spaces. DPR completed this project with zero defects, meaning the project had no “punchlist” items at the time of substantial completion. This means during construction that 2,596 quality items were tracked and resolved “on the fly,” as one nominator put it.

healthcare

Az Business names Healthcare Leadership Awards finalists

Each year, AZ Business magazine hosts the Healthcare Leadership Awards to honor the women, men and institutions that bring excellence and innovation to Arizona’s healthcare sector.

Az Business is proud to announce the 2015 Healthcare Leadership Awards finalists, who were chosen by a panel of industry experts and will be recognized at the Healthcare Leadership Awards dinner and awards ceremony on April 9  at the Arizona Grand Resort. The finalists, in alphabetical order, are:

Robert J. Arceci, M.D., Phoenix Children’s Hospital
Arrowhead Hospital, Abrazo Health
Barrow Neurological Institute
Blue Cross Blue Shield of Arizona
Tim Bricker, Chandler Regional and Mercy Gilbert
Rachel Calendo, Cardon Children’s Medical Center
Cancer Treatment Centers of America at Western Regional Medical Center
Dedicated Health Solutions
Peter Fine, Banner Health
Michele Finney, Abrazo Health
Kathleen Goeppinger, Midwestern University
Dr. Mark Hong, Affiliated Urologists
Insys Therapeutics
Catherine Ivy, Ben & Catherine Ivy Foundation
Dr. David Jacofsky, The CORE Institute
Magellan Health
Richard Mallery, Snell and Wilmer
Tony Marinello, IASIS Healthcare
Medtronic
Roger Morris, Quarles & Brady
Radiant Research
Remuda Ranch
St. Joseph’s Medical Center, Dignity Health
Martin L. Shultz, Brownstein Hyatt Farber Schreck
Sonora Quest
Southwest Behavioral Health
SynCardia
UnitedHealthcare
University of Arizona Cancer Center
Virginia G. Piper Cancer Center at Scottsdale Healthcare
VisionGate
Dr. Daniel D. Von Hoff, TGen
Dr. Glen Weiss, CTCA
Dr. David Wisinger, Maricopa Integrated Health System

Sun Health

Tucson Medical Center may join Mayo network

Tucson Medical Center trying to become part of the Mayo Clinic Care Network, according to the Arizona Daily Star.

The Mayo Clinic Care Network includes about 34 hospitals across the United States that have joined the network to improve clinical care, said Judy Rich, CEO of TMC .

“The goal is to share evidence-based medicine and to give our physicians here at TMC access to the care network,” Rich told the Star.

The collaboration is not an ownership change or an affiliation. TMC remains independent and locally owned.

Other Arizona hospitals in the Mayo network include ASU Health Services, Kingman Regional Medical Center and Yuma Regional Medical Center.

Once an anticipated merger between the University of Arizona Health Network and Phoenix-based Banner Health is completed next month, TMC will be the sole remaining acute-care community hospital in the city that is locally owned, the Star reported.

 

 

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AZRE announces 2015 RED Awards finalists

Every February for the last 10 years, AZRE magazine has shone a spotlight on the commercial real estate industry through its annual Real Estate Development (RED) Awards. This year, a record number of projects and brokerage teams were nominated for a chance to be recognized at this year’s RED Awards.

For tickets to this year’s RED Awards, click here.

After lively debate and a few unanimous decisions among this year’s selection committee, AZRE proudly announces the 2015 RED Award finalists are, in alphabetical order:

Congratulations to this year’s contending projects:
Adelante Healthcare Peoria
Banner Estrella New Tower Addition
Banner MD Anderson Cancer Center Phase II Clinic Expansion
Bottled Blonde/Livewire
Broadstone Lincoln
Chandler Regional Medical Center
CityScape Residences
College Avenue Commons
Coyote Center at Chandler-Gilbert Community College, Pecos Campus
CyrusOne, Building 4
General Motors IT Innovation Center
GoDaddy Global Technology Center
Great Hearts Academies, Arete Preparatory Academy
Heritage Marketplace
Lewis Prison Complex Expansion
Liberty Center at Rio Salado
Marketplace at Lincoln & Scottsdale
Mesa Community College Performing Arts Center
MZ
Ocotillo Brine Reduction Facility
Phoenix Sky Train Stage 1A
SkySong, The ASU Innovation Center — SkySong 3
Start @ West-MEC, Innovation Center
Sun Devil Marketplace
Sunset Heights Elementary School
Sussex Properties for TLC Label
The Newton
University of Arizona—McKale Center Renovation
University of Arizona—Old Main renovation

And the companies that have been nominated as finalists with the above projects:
ADM Group
AECOM
Alliance Residential Builders
Alliance Residential Company
Ameris Construction
Architekton
Arizona Board of Regents
Arizona Department of Administration
AV3 Design
Axis Projects Corporation
Balmer Architectural Group
Banner Health
Butler Design Group
BWS Architects
Cam-8, LLC
Carollo Engineers
Cawley Architects, Inc.
Chasse Building Team
City of Phoenix
Corgan Associates, Inc.
CyrusOne Inc.
Dick & Fritsche Design Group
Dignity Health
DLR Group
DPR Construction
Emc2 Architects Planners, PC
Evening Entertainment Group
Fanning Howey
Fimbres Studio
Follett Higher Education Group
Gannett Fleming, Inc.
Gensler
Great Hearts Academies
HKS, Inc.
Hunt Construction, an AECOM Company
Iconic Design Studio

Intel Corporation
JAVCON
JE Dunn Construction
John Douglas Architects
Jones Studio
Kitchell
Layton Construction Co., Inc.
Liberty Property Trust
LGE Design Build
Maricopa Community Colleges
Mark IV Capital
McCarthy Building Companies, Inc.
McCarthy Kiewit Joint Venture
MD Heritage LLC
Modus Development
Mortenson Construction
Okland Construction
ORB Architecture, LLC
Orcutt | Winslow
Peoria Unified School District
PHArchitecture
Plaza Companies
Poster Frost Mirto
RED Development
RJM Construction
RSP Architects
Ryan Companies US, Inc.
SmithGroupJJR
Sundt Construction, Inc.
Sussex Properties
The Whiting-Turner Contracting Company
Venue Builders
Venue Projects
Wespac Construction Inc.
West-MEC

 

Brokerage Team Finalists

CBRE
Pat Feeney, Dan Calihan and Rusty Kennedy
Todd Fogler, Ryan Eustice and Jami Savage-Gray
Tom Adelson, Jim Fijan, Jerry Robert and Corey Hawley

CPI
Leroy Breinholt
Trent Rustan
Tyson Breinholt

Cushman & Wakefield
Chris Toci and Chad Littell
Jackie Orcutt, John Grady and Mackenzie Ford
Larry Downey

DTZ
Mike Haenel, Andy Markham and Will Strong
Robert Buckely, Tracy Cartledge, Steve Lindley

JLL
Anthony Lydon and Marc Hertzberg
Bill Honsaker, Anthony Lydon and Marc Hertzberg
Dave Seeger, Karsten Peterson and Mark Gustin
John Bonnell and Brett Abramson
Mark Detmer and Bo Mills
Pat Harlan, Steve Sayre and Kyle Westfall
Pat Williams, Steve Corney, Vicki Robinson and Andrew Medley

Lee & Associates
Craig Coppola and Andrew Cheney

Velocity Retail
Andy Kroot
Darren Pitts and Dave Cheatham

The project and brokerage team winners will be announced at the RED Awards reception on Thursday, Feb. 26, at the Arizona Grand Resort between 6 and 8 p.m. At the event, winners of AZRE’s 2015 developer, general contractor, architect and subcontractor of the year awards will also be announced.

Tickets are now available for the RED Awards. here for more information.

healthcare

Banner Health unveils new leadership, facility names

With an approval by the Arizona Board of Regents (ABOR) on the merger agreement to bring the University of Arizona Health Network into Banner Health, and closure of the agreement on Feb. 27, an academic-focused division will be created at Banner that will result in new facility names and leadership appointments within the division. The ABOR vote is expected to occur during the week of Jan. 26.

If ABOR approves, the closure of the agreement on Feb. 27 will launch the Banner – University Medicine Division.  It will include three academic medical centers, a physician group serving as faculty in the academic medical centers and at the University of Arizona Colleges of Medicine in Tucson and Phoenix, and other services.

New Names

The name changes for the academic medical centers and physician group after Feb. 27:

• University of Arizona Medical Center – University Campus, to become Banner – University Medical Center Tucson
• University of Arizona Medical Center – South Campus, to become Banner – University Medical Center South
• Banner Good Samaritan Medical Center, to become Banner – University Medical Center Phoenix
• University of Arizona Physicians, to become Banner – University Medical Group

“We recognize that Banner Good Samaritan employees and physicians will refer to the hospital as ‘Good Sam,’” said Banner Health President and CEO Peter S. Fine. “But, going forward, the future of this institution is clearly defined and identified in its new name as the designated academic medical center for the University of Arizona College of Medicine – Phoenix.”

This new division will include more than 1,400 licensed hospital beds, more than 10,000 employees, and more than 800 faculty physicians in Phoenix and Tucson.  Other divisions within Banner include Arizona West with four hospitals, Arizona East with eight hospitals and the Western Division with 14 hospitals. Thirteen of the Western Division hospitals are in six states outside of Arizona. All of these divisions also include many other Banner Health services.

Leadership Appointments – Tucson
•The merger closure will bring Kathy Bollinger into the position of President of the Banner – University Medicine Division. Bollinger is moving into this new post after six years as President of Banner’s Arizona West Division.
• Michael Waldrum, MD, current President and CEO of University of Arizona Health Network, whose role will dissolve with the merger, has chosen not to pursue an executive leadership position within Banner and will leave his post with the closure of the merger.

“While we are excited by the strengths Kathy Bollinger will bring to her role leading a large, complex and new division, we are also grateful for the inspired, dedicated and courageous leadership Michael Waldrum displayed in helping to negotiate the agreement and transition UAHN into Banner,” said Fine. “We know Dr. Waldrum will be sought after for his skills and we look forward to his continued success as a health care leader.”

“It’s been my privilege and pleasure to serve as CEO of the UA Health Network these past two years and to see this complex merger come to fruition,” Dr. Waldrum said. “I am proud to have played a part in it and am certain it will benefit Tucson, the University of Arizona, and especially our patients.  I’m leaving Tucson knowing that Kathy Bollinger and other leaders of the Banner – University Medicine Division are well poised to take academic medicine to new heights in this state.”

Other executives of the new Banner – University Medicine Division include:
• Tom Dickson will join the Banner – University Medicine Division executive team as Chief Executive Officer at the Banner – University Medical Center Tucson and South campuses (479 and 245 licensed beds, respectively).  Dickson is moving into this role from his post as CEO of Banner Thunderbird Medical Center, a 561-bed (licensed) hospital in Glendale, Ariz. He will replace current CEO Karen Mlawsky who is moving into another senior executive role within Banner (see Phoenix area section of the release).
• Steve Narang, MD will continue in his role as Chief Executive Officer at Banner – University Medical Center Phoenix (known as Banner Good Samaritan Medical Center until close on February 27). Narang was named CEO at Banner Good Samaritan in 2013 and prior to that he served as Chief Medical Officer (CMO) of Cardon Children’s Medical Center in Mesa.
• Jeff Buehrle, Banner’s Chief Financial Officer (CFO) for the Arizona East Division, will become the CFO for the Banner – University Medicine Division.
• Cathy Townsend RN, Chief Nursing Officer (CNO) at Banner Boswell Medical Center, a 501-bed hospital in Sun City, Ariz., will move to Tucson as the CNO for Banner – University Medical Center Tucson and South campuses.
• Another new division appointment is Jason Krupp, MD, who will become Chief Executive Officer of Banner – University Medical Group. Dr. Krupp comes from Banner Good Samaritan Medical Center in Phoenix, where he served as Chief Medical Officer (CMO). Prior to this position, Dr. Krupp was CMO at Banner Boswell Medical Center for two years. He is also well-known in Tucson medical circles from previous positions as CMO at Tucson Medical Center and Clinical Services Chief of General Medicine at the University of Arizona.
• Robert Groves, MD, will become Chief Medical Officer for the Banner – University Medicine Division. Dr. Groves will serve in this new role while continuing his Banner system responsibilities as Vice President of Health Management, in which he provides physician leadership for population health management, medical informatics, telemedicine strategies and reliable design of clinical care delivery.
• Beth Stiner will serve as Vice President of Human Resources for the Banner – University Medicine Division. She has served as Chief Human Resources Officer for Banner Good Samaritan Medical Center and as Chief Human Resources Officer for the UAHN integration activities.

Leadership Appointments – Phoenix Area
• Rob Gould, currently the CEO of Banner Desert Medical Center, a 639-bed (licensed) hospital, will become the new President of Banner’s Arizona West Division. Gould also served as CEO of Banner Estrella and held other leadership roles at Fairbanks Memorial Hospital in Alaska, which is operated by Banner Health.
• Current CEO of University of Arizona Medical Center – University and South Campuses, Karen Mlawsky will become the CEO of Banner Desert Medical Center.
• Deb Krmpotic, CEO of Banner Estrella Medical Center, a 301-bed (licensed) hospital in west Phoenix, will move to the Banner Thunderbird CEO post in Glendale.
• Courtney Ophaug, currently an associate administrator at Banner Boswell, will become the new CEO at Banner Estrella.

Other appointments into vacated positions will be announced as these positions are filled.

List of new leadership appointments:
• Kathy Bollinger, President, Banner – University Medicine Division
• Tom Dickson, CEO, Banner –  University Medical Center Tucson and South campuses
• Jeff Buehrle, CFO, Banner – University Medicine Division
• Beth Stiner, Vice President, Human Resources, Banner –  University Medicine Division
• Robert Groves, MD, Chief Medical Officer, Banner – University Medicine Division
• Cathy Townsend, RN, CNO, Banner –  University Medical Center Tucson and South campuses
• Jason Krupp, MD, CEO, Banner – University Medical Group
• Rob Gould, President, Arizona West Division
• Karen Mlawsky, CEO, Banner Desert Medical Center
• Deb Krmpotic, CEO, Banner Thunderbird Medical Center
• Courtney Ophaug, CEO, Banner Estrella Medical Center

* Division executive appointments will take effect with the closure of the merger. Between now and the closure, newly identified leaders will be introducing themselves to their new colleagues through the division as well as community leaders. However, these newly identified leaders will not become involved in operational decision-making until the merger closure.

azBIGmedia-srp_ACCAwards2015-090

Az Business honors top corporate counsel

Effective corporate counsel has never been more important than it is in today’s new economy. And on Thursday at the Camelback Inn, Az Business magazine partnered with the Arizona Chapter of the Association of Corporate Counsel and the State Bar of Arizona to present the 2015 Arizona Corporate Counsel Awards (ACC Awards).

2015 Arizona Corporate Counsel Awards

 

As the featured speaker, high-profile Valley attorney Grant Woods had the crowd of more than 300 rolling with his roast of the current political scene.

“Sheriff Joe (Arpaio) became sheriff when I was attorney general,” Woods said, “and I thought he was amusing. But that joke is just really tired now.”

Presenting sponsors of the ACC Awards were Squire Patton Boggs and CBRE.

The following attorneys earned 2015 ACC Awards:

• David Bixby, senior vice president, general counsel and secretary at Banner Health,  was named General Counsel of the Year. Bixby joined Banner (then Samaritan Health System) in 1998 as senior vice president, general counsel and secretary. From 1981 to 1998, he was with Lewis and Roca LLP, in Phoenix, as an associate and partner, he specialized in corporate mergers and acquisitions, finance and health care law. Bixby received his bachelor of arts degree in history and literature from Harvard University, a bachelor of arts (honors) in history from the University of Cape Town, South Africa, and his law degree from Yale Law School. He is a member of the Arizona Bar, the American Health Lawyers Association, and the American Corporate Counsel Association.

JDA Software‘s legal department earned Legal Department of the Year. Led by Chief Legal Officer Martin Felli, JDA’s legal team has grown from approximately 10 to 24 associates in the last six months to better support the company’s strategic initiatives.  The legal department has focused its efforts on building the team from Arizona-based legal talent. The team’s proactive, high-engagement business model aligns to the company’s guiding principles and leaves a lasting impression that JDA is a company people want to do business with. With a focus on improved communications, employee engagement, streamlined corporate governance processes and proactive client-centered  internal training and awareness initiatives on a wide range of compliance matters, the team embraces the company’s mission to “plan to deliver” in all aspects of its work.

• Franc Del Fosse, general counsel and secretary at Insys, was named IP Attorney of the Year.  After joining Insys, Del Fosse worked with President and CEO Michael L. Babich in establishing the legal and compliance departments of Insys.   Immediately prior to joining Insys, Del Fosse was a partner at the law firm of Snell & Wilmer. Del Fosse began his legal career as an associate at the law firm of Shearman & Sterling and holds a degree from Columbia University School of Law and an undergraduate degree from Arizona State University.  In 2013, Insys had its initial public offering and had the top performing IPO nationally that year. In 2014, Inys was named Arizona Bioscience Company of the Year by the Arizona Bioindustry Association.

• Carmen L. Neuberger, senior vice president, legal affairs and general counsel for Phoenix Children’s Hospital earned Nonprofit Attorney of the Year. Neuberger is responsible for managing the legal environment at Phoenix Children’s. This includes providing legal guidance, developing hospital-wide policies and procedures, counseling the hospital on business transactions, and managing complex contractual relationships. She also is involved in the legal aspects of medical staff privileging and credentialing, risk management, patient-related matters, regulatory compliance and privacy, clinical research and employment law. She is also credited with developing and implementing a code of ethics, and improving the relationship between the legal and human resources departments. Neuberger came to Phoenix Children’s in 2007 with more than 20 years of experience in healthcare law.

• Mary Beth Orson, vice president, legal and deputy general counsel for Apollo Education Group was named Public Company Attorney of the Year. At the time Orson joined Apollo, there were a number of significant pending legal matters, including a Section 10(b)(5) class action lawsuit. In response to these matters and other challenges, the Apollo general counsel’s office, under Orson’s direction, updated and adapted the company’s disclosure controls and procedures to reflect the far more complex business organization that Apollo had become in the years prior to her arrival. These policies and procedures led to enhanced public disclosure practices that we believe have been emulated by other leading proprietary education companies. Orson is credited with effectively creating order out of disorder.

• Michael Reagan, executive vice president and general counsel for Kahala Corporation, was named Private Company Attorney of the Year. During his 15-year tenure with Kahala, Reagan has overseen all legal and real estate affairs for the company and its 14 restaurant brands — which include Cold Stone Creamery, America’s Taco Shop, Blimpie, Taco Time, Great Steak & Potato and Samurai Sam’s. He is part of an executive team that, during the past eight years has grown Kahala from 80 outlets to more than 3,000; raised nearly $200 million in private transactions; identified, negotiated and completed nearly $200 million in acquisitions. Reagan personally handled all due diligence and other legal aspects of each transaction and helped integrate the acquired companies into Kahala and its uniform franchising and operating platform.

• Jason Steiner, corporate counsel, Insight Enterprises, was named Up-and-Comer of the Year. In less than two years, Steiner has proved himself to be a valuable contributor to the Legal Department at Insight, working on contracts, supporting internal investigations throughout North America, litigating smaller claims himself, supporting litigation involving restrictive covenants with former employees, becoming proficient in the field of eDiscovery and developing the necessary labor and employment knowledge to be a front-line resource for the HR department.  Steiner has a “can do” attitude, a willingness to learn new areas and the drive and tenacity to see tasks through to completion. Steiner graduated from ASU with a B.S. in finance (2009) and a J.D. (2012) from the Sandra Day O’Connor College of Law.

Phoenix Children's Hospital

The effect of mergers on healthcare real estate

Healthcare in America is changing and bringing real estate with it. Healthcare networks are growing their market shares, and healthcare mergers and acquisitions have been on the rise in the first half of 2014, according to an August report by Berkery Noyes. Deal volume increased during that time by 18 percent, to the tune of $5.45B, according to the report. This is something Arizona has a front row seat to. In July 2013, Tenant Healthcare bought Vanguard Health Systems, which operates Abrazo Health Care, the second largest health care delivery system in Arizona. Last October, Scottsdale Healthcare and John C. Lincoln Health Network finalized its system-wide affiliation. In August, Banner Health announced it acquisition of University of Arizona’s medical facilities and programs. Scottsdale-based Healthcare Trust of America, Inc. (HTA) acquired six medical office buildings (MOBs), outside of Arizona, from ProMed Properties for $200M, the largest MOB acquisition of the first half of 2014.

“Most medical real estate in the Valley has been built around a hospital trying to draw patients into their beds,” says Ensemble Real Estate CEO Randy McGrane. “They’ve invested capital into them, and that’s how they get a return.” However, that idea, catalyzed by the Affordable Care Act, technological advances and general market conditions, is becoming outdated, says McGrane. It’s more profitable for networks to have out-patient care spread within communities, away from the hospital and closer to patients. This is evidenced by the dozens of ambulatory care facilities Banner Health has constructed throughout regions.

“Health systems and physician groups have been forced to compete for market share in the pursuit of volume and reduced overhead expenses,” says HTA’s Executive Vice President, CFO, Treasurer and Secretary Robert Milligan. “From a medical office perspective, this has resulted in tenants that are better credits, looking for larger blocks of space and focused on key locations that will help their practices generate volume. Locations that can offer these features have and will continue to benefit from this consolidation trend.”

As a result, there are more off-campus development happening. The one exception, McGrane notes, may be one at Banner Estrella, for which the medical network recently placed and RFP. Existing on-campus buildings, therefore, are suffering vacancies higher than 25 percent in some cases. Highest and best use for these buildings over time, McGrane says, includes facilities that support a hospital’s known specialties or encourage post-acute care and rehabs, which are more cost-effective to invest in, given the reimbursement systems established by the ACA.

“It’s a painful change,” McGrane says. “Ultimately, it will end up being a better system…We have so much clinical advancement, but we haven’t developed the underlying system to go with it.”

“The great thing about these larger tenants is that they are focused primarily on driving volume into their practices,” Milligan says. “This means that they are focused on office space that allows the physician to utilize the infrastructure of a hospital or surgery center and also provides for an efficient patient experience. Cost, while important, is becoming a secondary factor. We are actively investing in our buildings to attract these larger tenants who will be the long term providers of healthcare in this country.”

fine

CEO leads Banner Health through healthcare ‘re-invention’

Around the first of the year, Phoenix-based Banner Health is expected to close on a nearly $1 billion deal to acquire the University of Arizona Health Network and its subsidiaries. The deal will make Banner the largest private employer in the state, will pump least $500 million of spending on capital projects into the state’s economy of the the next five years and will pay of UAHN’s long-term debt, which totals about $146 million. Az Business sat down with Peter Fine, Banner’s president and CEO, to talk about the impact of the acquisition and the state of the healthcare industry.

Az Business: How have you been able to grow Banner through all the uncertainty in the healthcare industry?
Peter Fine: We have a lot of smart people at Banner. There is good leadership. There is good strategic thinking. There is great accountability. There is great discipline. There is great focus. It’s an organization that plans the work and works the plan.

AB: Hw have you been able to instill the discipline needed for growth?
PF: It’s a leadership culture. It’s an organization that strives to achieve, decides what it needs to get it done, throws a lot of resources at it to get t done and has leaders who feel accomplished when they achieve.

AB: Banner bought Casa Grande Medical Center last year when it was facing major financial issues. How were you able to turn it around so quickly?
PF: In this day and age of healthcare, there are a lot of pressures on healthcare organizations. Pressures are caused by a highly complicated environment, things are very ambiguous and it’s not always clear what to do. When you’re trying to respond to that kind of environment, which is an industry that’s trying to re-invent itself, that puts enormous pressure on individual organizations to maintain financial stability, high clinical quality and have the resources needed to invest in those things needed to re-invent yourself. Banner is able to spread fixed overhead over a big base. In a situation where an industry is re-inventing itself, you have to make investments — financial investments, people investments, resources , capital investments  — and that becomes hard to do when it’s an industry that’s having its reimbursement environment restricted. So it becomes even more important to find ways to spread that fixed overhead investment over a big base to bring down your costs for services. Casa Grande recognized the reality of today’s world and its position in today’s world and believed that working with Banner would provide advantages for the community by creating a more stable environment.

AB: How does that business relationship impact patient care?
PF: We have a care model that we like to put in place. We have an electronic environment that has has been very beneficial in improving outcomes. Our ability to provide capabilities that some of the more rural hospitals could never have one their own leads to an enhanced clinical environment.

AB: How is consolidation helping the healthcare industry?
PF: Consolidation is doing multiple things. 1) It’s letting organizations grow and spread fixed overhead over a big base. 2) It’s allowing organizations to make investments that they might not otherwise be able to make because it can bring financial stability. 3) It allows us to get into new ways of providing business, so the Banner Health Network was created to allow us to get into value-based care and population health management. If we didn’t have all the infrastructure of Banner Health, it would be impossible to provide that capability. It offers new options to the public. It offers new options to businesses, where they can contract for services and bring down their cost-per-unit of service because it’s based on our ability to manage care. At the end of the day, it’s going to be very, very hard to get a whole lot more improvement on the acquisition of product to bring down your costs. There’s only so far you can go on managing labor and still provide a reasonable product. The next great effort to reduce the cost of healthcare is to manage care better, which means you have to have techniques and capabilities in place to look at the cost of care and decide what is really necessary in the provision of care and where can you reduce the use of services, especially for chronic care patients. If you coordinate care better, you’re going to use services better, as opposed to an environment where there is no coordination, duplication of services, duplication of testing and there is more cost associated with that. So this whole issue of providing people with the right care at the right time at the right place is really what the coordination of care is all about, what value-based care is all about and what risk assumption of care is all about. From our perspective, if you can organize yourself structurally to do that, you then have an opportunity to be far more competitive, especially with organizations that are putting more and more of the costs onto the consumer through co-payments, deductibles and reductions of coverage. Therefore, we are moving into consumer world where people are going to make decisions on how they purchase healthcare far differently than they’ve made those decisions before. It’s going to be based on where they can get the best value for the dollar that they’re spending.

AB: What do you expect from Round 2 of healthcare exchange enrollment?
PF: Some of the insurers provided an unsustainable price for the product they were trying to provide, so I think some of those prices are going to go up. I think there will be continued growth in the exchanges, partly because I think employers are going to start making different decisions on their coverage within their employee population.

AB: What’s been the impact of the Medicaid expansion?
PF: I can tell you I think it’s been a boon for the state. We’ve seen a significant impact. It’s had its desired effect. We’ve had a decrease of uninsured an increase of Medicaid-insured population as well as people on exchanges. But remember, a population like Medicaid pays of 63 cents or 65 cents on the dollar of full cost. That means we are still cross-subsidizing off of some other category. But it is taking that category where there was no reimbursement at all and and making that category smaller. The best thing is that the part paid for by the federal government is only going to go up. 17 percent down to 10 percent.

AB: How do you hope the acquisition of the University of Arizona Health Health Network will impact the business side Banner Health?
PF: It’s a big acquisition and a complicated acquisition. Part of the goal is to help stabilize an academic environment which is beneficial to the state, but another part of the goal is growing Banner’s presence in other markets and build our state-wide presence for various contracting opportunities later on. It has the potential to be highly beneficial and we will be the primary teaching relationship for the two medical schools. We think we can help stabilize some of the issue around academic medicine and the clinical environment surrounding academic medicine. For us, it links us to a research and academic environment that we think will enhance the work that we do.

AB: How do you hope the purchase of the University of Arizona Health Health Network will impact the cutting-edge research already being done at Banner Health?
PF: It’s going to grow the research base of Banner. Today, Alzheimer’s is the biggest focus for us from a research perspective. As we move into a more direct environment with the medical schools, we are going to find other opportunities to invest significantly into this world of research as it pertains to the clinical environment. You’re going to see us make more investment in the clinical research side. I know there are folks at UA who love the idea of having access to the totality of Banner’s database, which can advance the research cause of the medical school.

AB: How does research fit into your mission and goals for Banner Health?
PF: Research has not been a priority in the past. It has been driven mostly by specific physician interest. When we acquired the Sun Health system in 2008, we acquired the Sun Health Research Institute, so that pushed some of our thinking. Clearly, our Alzheimer’s Institute has been a major area of focus. With this new relationship, I think you’re going to see a growing effort to be more involved in research, but specifically clinical research to improve patient outcomes and devise strategies to improve population health management.

AB: Which of Banner Health’s accomplishments give you the most pride?
PF: I came to Banner 14 months after the creation of the organization. (Editor’s note: Banner Health was created on Sept. 1, 1999, when nonprofits Samaritan Health System and Lutheran Health Systems announced their merger). Part of the job when was came was respecting history, but not being controlled by it. The goal was to take the historical essence and cultures of two organizations and create a new one. That can be very risky because people are very proud of their historical base. I’m not a retrospective thinker, I’m a prospective thinker. But if I had to say what I’m most proud of, it’s that we’ve been able to get Banner to look to the future, to not hold onto its historical past, recognize that this is an industry in turmoil that’s being re-invented and get people to focus on where we are going.

AB: How did you make that happen?
PF: Thirteen years ago, we created “Banner’s 2020 Vision,” which has been Banner’s guide since that period of time. It’s a 20-year-game plan to re-invent the organization. Some would say, “That’s really bold. You’re going to produce a 20-year game plan to direct your organization for that long a period of time?” We did and it has been a guiding reference tool for us for all the things we do — for strategies that we have, for tactics that we implement, the way we focus people, the way we pay people. It has been an overriding influence on the company’s direction and approach for dealing with an industry in turmoil. Without this guide, Banner could have been an organization that fell off the cliff. Instead of that happening, we’ve been able to bring together two cultures and get them to ficus on the future and it’s been one of Banner’s hallmark successes.

lawyers

Az Business announces finalists for ACC Awards

Az Business magazine, in conjunction with the State Bar of Arizona, have announced the finalists for the 2015 Arizona Corporate Counsel (ACC) Awards.

The finalists and winners will be honored at an awards dinner and reception on Jan. 15, 2015 at the JW Marriott Scottsdale Camelback Inn Resort & Spa in Scottsdale. Click here for more information about the event.

Here are the finalists:

Arizona State University legal department
David Bixby, Banner Health
Kelleen Brennan, Universal Technical Institute
Franc Del Fosse, Insys
Brad Gazaway, The Dial Corporation
Illya Iussa, Arizona Summit Law School
JDA Software legal department
John T. Jozwick, Rider Levett Bucknall
Alan Kelly, Scottsdale Lincoln Health Network
David Mulvihill, Make-A-Wish Foundation
Wendy Neal, Arcadia Biosciences
Carmen Neuberger, Phoenix Children’s Hospital
Mary Beth Orson, Apollo Education Group
Michael Reagan, Kahala Corporation
Michael Rissman, Republic Services
Brian Roberts, Grand Canyon University
Scottsdale Lincoln Health Network legal department
Karen Stein, IO
Jason Steiner, Insight Enterprises
Jenny Holsman Tetreault, Rural/Metro
Tiffanie Woodie, Petsmart

Dennis Dahlen, senior vice president and CFO for Banner Health; Gary Dalke, CFO for Western Refining, Inc.; Lawrence Eisel, CFO of Total Transit; and Richard Skufza, executive vice president and CFO of LaneTerralever.

FEI Arizona honors CFO of the Year winners, finalists

The Arizona Chapter of Financial Executives International (FEI) handed out its annual CFO of the Year Awards Thursday during a ceremony at the Camelback Inn in Scottsdale.

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The CFO of the Year Awards are given to professionals for outstanding performance in their roles as corporate financial stewards. This program provides many benefits to the business community by highlighting the important roles that financial executives play within the region.

Earning 2014 awards were Dennis Dahlen, senior vice president and CFO for Banner Health in the nonprofit category; Gary Dalke, CFO for Western Refining, Inc. in the public company category; Lawrence Eisel, CFO of Total Transit in the private company category; and Richard Skufza, executive vice president and CFO of LaneTerralever in the private company category.

Here is a closer look at the winners:

Dennis Dahlen:  Dahlen oversees the financial operations of an organization with more than $5 billion in revenue, including all treasury functions related to investment management and capital development. Dahlen’s work with executives throughout the company ensures that realistic budgets are established and budget goals are met or exceeded.
Dahlen’s impact on Banner Health: Under Dahlen’s leadership, financial pro formas have been reliably solid foundations for Banner’s expansions in Arizona. They have included construction of Cardon Children’s Medical Center, Banner MD Anderson Cancer Center, Banner Ironwood Medical Center, new towers at Banner Baywood Medical Center, Banner Del E. Webb Medical Center, Banner MD Anderson Cancer Center and Banner Estrella Medical Center; the acquisition of Sun Health (two hospitals and a research center), Arizona Regional Medical Center and Casa Grande Regional Medical Center; and the development of the Banner Health Network.

Gary Dalke: Dalke is one of Western Refining’s founding executives and is responsible for all finance, treasury, tax, accounting, and information system activities throughout Western and its affiliates. Dalke is also a critical member of the executive committee, responsible for establishing company goals, performance metrics, and monitoring mechanisms.
Dalke’s impact on Western Refining: In the fall of 2013, Dalke guided Western through a spin-off of the company’s logistics assets via an initial public offering of a new entity — Western Refining Logistics, LP — and acquisition of the general partner and 38 percent of the limited partnership of Northern Tier Energy LP, both within a 31-day period. Dalke led by example, demonstrating a dedicated work ethic, calm demeanor, command of accounting principles and financial market prowess. Each of these attributes were critical to successful completion of these extraordinary accomplishments.

Lawrence Eisel: In his first five years, Total Transit’s revenue has nearly quadrupled. Eisel has been heavily involved in strategic planning, business planning, budgeting and working capital management to support this phenomenal growth.  In addition, Eisel has been successful in developing a strong relationship and credibility with the company’s banks to finance this growth.  He has also coordinated all risk management activities for the organization.
Eisel’s impact on Total Transit: Eisel has implemented several changes that define showcase his vision, including implementation of a balanced scorecard process, establishing an internal audit function and coordinating a significant estate planning project that will ultimately save millions in future tax liabilities. Most recently, to combat a tighter insurance market and increasing auto liability premiums, Eisel and his team successfully identified alternative insurance designs and created a captive insurance entity, which will control the costs of the company’s auto liability risk.

Richard Skufza: Skufza works closely with the CEO and other executive leadership to accomplish corporate strategic objectives. He is one of three key contributors to the development and execution of LaneTerralever’s’s corporate strategy while maintaining important external relationships with banks, clients, external auditors and suppliers.
Skufza’s impact on LaneTerralever: Over the last nine months, Skufza led the integration of the accounting, management information and telephone systems into one unified system and was instrumental in bringing the two cultures and two offices of E.B. Lane and Terralever into one office. Skufza’s prior initiatives include online recruiting and employee orientation process; an enhanced performance evaluation process in order to align corporate values, mission and vision throughout the organization; and employee training and staff development with the introduction of E.B. Lane University.

Banner Baywood Medical Center

8 Banner Health hospitals earn safety recognition

Eight Banner Health hospitals received top grades (A’s and B’s) for patient safety, an independent watchdog organization announced Wednesday.

Four Banner Health hospitals, two in Arizona and a pair in Colorado, earned “A” scores while four additional Arizona hospitals received “B” scores. Banner Boswell Medical Center and Banner Del E. Webb Medical Center in Sun City join North Colorado Medical Center in Greeley, Colo. and McKee Medical Center in Loveland, Colo. with top “A” grades for patient safety.

The Fall 2014 Hospital Safety Score report was released by The Leapfrog Group an independent organization which grades hospitals on how they protect patients from errors, injuries and infections.

“Patient safety is a guiding principle for all of our employees in the communities we serve,” said Dr. John Hensing, Banner Health’s executive vice president and chief medical officer. “We are dedicated to providing the highest quality care in a safe and healthy environment and are proud to be recognized for our ongoing efforts.”

According to Leapfrog, the Hospital Safety Score uses 28 measures of publicly available hospital safety data to produce a single “A,” “B,” “C,” “D,” or “F” score representing a hospital’s overall capacity to keep patients safe from preventable harm. More than 2,500 U.S. general hospitals were assigned scores in fall 2014, with about 31 percent receiving an “A” grade. The Hospital Safety Score is fully transparent, with a full analysis of the data and methodology used in determining grades available online.
Banner Health hospitals and their top Hospital Safety Scores:

Banner Boswell Medical Center (Sun City): A
Banner Churchill Medical Center (Fallon, Nev.): B
Banner Del E. Webb Medical Center (Sun City): A
Banner Desert Medical Center (Mesa): B
Banner Estrella Medical Center (Phoenix): B
McKee Medical Center (Loveland, Colo.): A
North Colorado Medical Center (Greeley, Colo.): A
Banner Thunderbird Medical Center (Glendale): B

Headquartered in Phoenix, Banner Health is one of the largest, nonprofit health care systems in the country. The system manages 25 acute-care hospitals, the Banner Health Network and Banner Medical Group, long-term care centers, outpatient surgery centers and an array of other services including family clinics, home care and hospice services, and a nursing registry. Banner Health is in seven states: Alaska, Arizona, California, Colorado, Nebraska, Nevada and Wyoming.

energy.bill

SRP recognizes Champions of Energy Efficiency

SRP honored seven innovative businesses and organizations for their energy-efficiency efforts and savings at the inaugural Champions of Energy Efficiency Awards event.

The awards are part of SRP’s efforts to encourage commercial customers to take advantage of the SRP Business Solutions programs to reduce energy use and save money.

“Utility costs can be one of the biggest expenditures for businesses, and SRP has made an effort to assist companies in reducing those costs,” said Dan Dreiling, SRP director of Market Research and Customer Programs. “The organizations we recognized today are to be commended for their efforts to implement new technologies, institute behavioral change and forge paths for energy efficiency.”

Through its Business Solutions programs, SRP partners with commercial customers to help them decrease their energy use, which defers the need for future energy generation, reduces emissions and helps control costs.

As a result of these efforts, last year SRP surpassed its energy-efficiency goals with commercial customers providing a combined annual energy savings of 195 million kilowatt-hours (kWh), which is equivalent to powering more than 10,000 homes for one year.

Helping local firms grow is the cornerstone of SRP’s economic development efforts. The utility’s award-winning customer service team helps local business owners by providing critical information about potential sites and money-saving rebates on energy-efficient upgrades and new construction.

SRP’s Sustainable Portfolio Principles, which guide decisions regarding energy-efficiency measures and the acquisition of renewable energy resources, have established a goal of meeting 20 percent of expected retail requirements with sustainable resources by the year 2020.

The award recipients, chosen from 14 finalists, are listed below. Profiles of all 14 finalists can be found at srpnet.com/awards.

Large Business – Fry’s Food and Drug: The retail food company took advantage of the SRP Business Solutions rebate programs to implement 50 projects in 30 metropolitan Phoenix stores, encompassing roughly 2.1 million square feet of store and administrative space. So far, Fry’s has realized 1.2 million kWh in energy savings per year and shaved peak demand by more than 140 kilowatts.

Midsize Business – Capri on Camelback, Greystar: The organization implemented a lighting retrofit in which every light bulb on the property was replaced with energy-efficient lighting resulting in annual energy savings of more than 600,000 kWh – enough to power more than 50 occupied apartments for an entire year.

Small Business – Temple Beth Sholom of the East Valley: A lighting-retrofit project reduced annual energy use by 47,000 kWh resulting in an overall annual savings of 50 percent.

Schools K-12 – Isaac School District: The district’s HVAC systems were upgraded saving nearly 500,000 kWh of energy use annually, which is enough energy to power one school for an entire year.

Colleges and Universities – Maricopa Community Colleges: The college district realized an annual savings of 1.1 million kWh (enough to power more than 60 homes for one year) through retrocommissioning and upgraded lighting projects.

Charitable and Nonprofit – St. Daniel the Prophet Roman Catholic Parish: The parish developed a new energy-saving strategy for the entire campus – replacing old outdated lighting with new lighting technology – resulting in a 46 percent savings in energy costs.

Outstanding Achievement – Banner Health: Cardon Children’s Medical Center implemented low-cost energy-efficiency measures that resulted in savings of more than 2 million kWh in the first year. Banner updated several buildings under the SRP Standard and Custom business solutions programs resulting in 1.5 million kWh of savings. The combined energy savings are equivalent to powering more than 190 homes for a year.

nurses, healthcare, doctors

Healthcare drives increase in Phoenix job openings

Simply Hired, the largest independent job search engine with properties in 24 countries and 12 languages, today released its November 2014 U.S. Employment Outlook report which finds that job openings grew 3.17% month-over-month in October 2014.  This increase continues the ongoing job growth reported by Simply Hired over the past several months.

“Steady growth in the U.S. employment market continues as the number of available job listings grew 3.17% in October 2014,” said James Beriker, President and CEO of Simply Hired. “The Simply Hired Employment Outlook also shows gains in every one of the top 25 metros buoyed by healthcare postings and strong job growth in nursing roles.”

The number of job openings in Phoenix increased 3.68% month-over-month (September/October 2014) and Phoenix had 71,937 jobs open in October 2014.

The top hiring companies in Phoenix (in order):

• Banner Health
• Tenet Healthcare
• Dignity Health
• Scottsdale Healthcare
• Bank of America

Key findings from the monthly Simply Hired Employment Outlook report include:

• Every major metro experienced job growth. Job openings increased in all of the 25 largest U.S. metros in October 2014. The largest month-over-month gains were Chicago (5.97%) and Detroit (5.89%).

• Most industries and occupations post gains. A strong majority of industries (15 out of 18) experienced month-over-month growth in job openings in October 2014, with non-profit (13.05%) and real estate (9.61%) showing the largest rise. Job openings increased in 42 out of 54 occupation categories. Firefighters (13.55%) and nurses (13.01%) roles experienced the largest amount of growth month-over-month.

• Healthcare reigns as industry with greatest job inventory. Nearly one-half of the top posting companies in October 2014 were healthcare-related. There were also a significant number of job openings at financial services and academic institutions.

• Metro highlight: Atlanta. Simply Hired data for Atlanta ranks financial services, healthcare and technology as the top three posting industries in the metro region. Atlanta’s top posting companies include WellStar Health System (#1), Deloitte (#2), Northside Hospital (#3), Grady Healthcare (#4) and Piedmont Healthcare (#5).

Photo credit Stefan Yarish

Kitchell completes Casa Grande Medical Center renovations

Kitchell recently completed a remodel of the lobby of the Banner Casa Grande Medical Center, part of a re-branding of the hospital as one of the Banner family of healthcare facilities. Additional work to be completed includes work on the main entrance, utilities, roofing, building envelope enhancements and site work.
The 30-year-old facility, located at 1800 E. Florence Blvd., became part of the 25-hospital system earlier this year.

Sun Health

Banner Health honored for preparing emerging leaders

Banner Health leads the field in preparing current and future generations who are working to transform health care, according to The National Center for Healthcare Leadership (NCHL). Banner was listed as a 2014 “Top 10 BOLD” health care organization by NCHL. A total of 19 companies were selected from 120 health systems that participated in NCHL’s 2014 National Health Leadership Survey.

According to NCHL, BOLD (Best Organizations for Leadership Development) health care organizations use evidence-based leadership development practices to achieve excellence and improve the quality of healthcare in their communities. BOLD recognizes organizations that lead the field in development and preparation of current and future generations that will transform our health system.

“Banner is pleased to be recognized as a BOLD organization,” said Ed Oxford, Banner Health’s senior vice president and chief human resources/chief talent officer. “We recognize our current and emerging leaders need skills to achieve results. Our leadership development programs at Banner Health are proven to help our people optimize organizational talent and shape the future of the organization.”

Banner joins these highest ranking BOLD organizations on the Top 10 list:

• Cleveland Clinic (Cleveland)
• Cone Health (Greensboro, N.C.)
• Duke Regional Hospital (Durham, N.C.)
• Henry Ford Health System (Detroit)
• Mountain States Health Alliance (Johnson City, Tenn.)
• North Shore-LIJ Health System (Great Neck, N.Y.)
• Presbyterian Healthcare Services (Albuquerque, N.M.)
• Sutter Healthcare (Sacramento, Calif.)
• UT Southwestern Medical Center (Dallas)

“BOLD honors health systems for their leadership development work, which importantly, will be available to organizations throughout the country to give them tools to assess the effectiveness of their approach to preparing current and future leaders as a critical factor in achieving organizational excellence,” NCHL Chief Executive Officer Andrew N. Garman said. “We congratulate those BOLD organizations for their innovation and commitment to leadership development and hope to see their examples benefit other health systems.”

NCHL will recognize these organizations at its inaugural BOLD luncheon Nov. 20-21 in Chicago.

Headquartered in Phoenix, Banner Health is one of the largest, nonprofit health care systems in the country. The system currently manages 25 acute-care hospitals, the Banner Health Network and Banner Medical Group, long-term care centers, outpatient surgery centers and an array of other services including family clinics, home care and hospice services and a nursing registry. Banner Health is in seven states: Alaska, Arizona, California, Colorado, Nebraska, Nevada and Wyoming. For more information, visit www.BannerHealth.com.

health

Banner Health sees major gains in quality

Phoenix-area beneficiaries in the Medicare Pioneer Accountable Care Organization (ACO) served by Banner Health Network (BHN) receive a high level of quality care and preventive medicine that results in less cost to the nation’s Medicare system. Today, the Centers for Medicare and Medicaid Services (CMS) released the preliminary results for the Pioneer ACO’s Performance Year 2 (calendar year 2013) which further illustrates that point.

Recently released accountable care data from one of BHN’s payer partners in the private sector, offers similar cost and quality findings across commercial populations.

BHN’s quality score in 2013 reflected a gain of nearly 19 percent from the previous year. “Our providers are delivering high quality, coordinated care. The care they want to deliver,” said Dr. Shaun Anand, Medical Director for Banner Health Network. “They are rewarded for providing holistic care to BHN’s members and beneficiaries, and given the infrastructure, information and resources they need to be efficient and effective in preventive, chronic and acute care.”

As a top performer in the Medicare Pioneer ACO for the second consecutive year, BHN’s savings to CMS of more than $15 million made up 16 percent of the total $96 million returned by 23 Pioneers in Performance Year 2. This was possible as a result of delivering the right care, at the right time in the right setting.

“Highly engaged provider partners, information technology tools and an organizational commitment to value-based care were key elements of our success,” says Chuck Lehn, Banner Health Network Chief Executive Officer. “Supporting beneficiaries when they were most at risk and in need of medical advocacy— after a new diagnosis, following hospital discharge, or as a result of multiple emergency department visits, for example— has also been an important strategy in this program.”

BHN has continued to participate with the Pioneer ACO program in Performance Year 3 (current calendar year), and has recruited new qualified BHN physicians to further develop our Pioneer program in Performance Year 4 (calendar year 2015).

In December 2011, Banner Health Network announced that it had been selected as one of only 32 organizations in the country to demonstrate the Pioneer ACO Model. Only 23 organizations continued with the model after the first year. The central premise of the Pioneer ACO effort is to create value through a highly coordinated, collaborative network of providers who are focused on achieving the highest level of wellness and prevention possible for their Medicare patients, while addressing chronic and acute illness aggressively.

Pioneer provider networks benefit financially when they return savings to Medicare, not through increased volume of services that are reimbursed in a traditional fee-for-service model. Revenues are generated through a percentage of Medicare savings. Savings are realized through tight coordination of care and adherence to evidence-based care. If expenses are greater than the expected benchmark, that Pioneer ACO is at risk for a percentage of losses.

In addition to participating in the Medicare Pioneer ACO, BHN has developed accountable care relationships with commercial payers such as: Aetna, Cigna, Blue Cross Blue Shield of Arizona, and UnitedHealthcare, among others.

BHN is comprised of Banner Health-employed physicians and Banner Health-affiliated community physicians; 14 Banner Health hospitals; Banner Health Centers and Clinics; hospice, home care, lab and related clinical services. The Network ensures convenient access to Medicare beneficiaries with more than 3,000 providers located throughout Maricopa County and into Pinal County.

health

Banner Health acquiring all UA medical facilities

In a historic move that will transform the health care landscape in Arizona, the University of Arizona Health Network (UAHN) and the University of Arizona (UA) executed a Principles of Agreement document with Banner Health, to create a statewide health care organization and a comprehensive new model for academic medicine. This ground-breaking agreement will formalize discussions and is intended to lead to final definitive agreements sometime in the fall.

The proposed transaction is anticipated to generate approximately $1 billion in new capital, academic investments, and other consideration and value beneficial to UA and the community.

The anticipated transition of 6,300 employees working at UAHN’s two hospitals, the health plan and the medical group into Banner will create Arizona’s largest private employer with more than 37,000 employees.

The action follows votes from the UAHN and Banner boards of directors in support of proceeding with negotiations, as well as a vote by the Arizona Board of Regents (ABOR) to authorize UA to also move forward with UAHN and Banner. The parties will now work together towards final definitive agreements, anticipated to be completed and signed in September of this year. The definitive agreements must also be approved by ABOR and the boards of directors of UAHN and Banner. The proposed transaction is expected to close a few months following the signing of the definitive agreements.

“We are impressed by the thoughtfulness and thoroughness that has driven the UAHN board process in determining how best to meet the future needs of those they serve. In addition, this agreement strengthens and can accelerate the discovery efforts of our Colleges of Medicine in Tucson and Phoenix, leading to medical advances,” said ABOR Chair Rick Myers.

Proposed transition key elements:

• Create an Arizona-based, statewide health system that improves care for all the state’s citizens • Create a nationally leading health system that provides better care and improved patient and member experiences at lower costs through valued-based or accountable care organizations that utilize population health management models that emphasize wellness;
• Expand University of Arizona Medical Center capabilities for complex academic/clinical programs such as transplantations, neurosciences, genomics-driven precision health, geriatrics, and pediatrics while providing for investment opportunities in other areas;
• Bolster fiscal sustainability, eliminating persistent shortfalls and low operating margins currently experienced by UAHN.

In addition to solving the immediate financial needs, the proposed agreement will:

• Eliminate the debt burdening UAHN (currently projected to be $146 million)
• Provide resources for improved hospital infrastructure, including the $21 million purchase of land currently leased to UAMC and $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
• Create a $300 million endowment which will provide a $20 million per year revenue stream to advance the UA’s clinical and translational research mission
• Preserve historic funding levels between the clinical and academic partners in addition to a $20 million per year enhancement.
• Allow additional funding support based on growth in revenues generated by the clinical and academic partnership.
• Improve operational efficiencies
• Secure and sustain a lasting relationship with, and commitment to, the University of Arizona, anchored by an Academic Division within Banner. The Academic Medical Centers: The University of Arizona Medical Center – University and South Campuses and Banner Good Samaritan Medical Center and the faculty practice plan, will support the growing needs of the Colleges of Medicine in Phoenix and Tucson and create a value-based delivery system;
• The Phoenix and Tucson academic medical centers will be infused with operational strength through the proposed transition and rapidly evolve into major economic drivers that will attract highly skilled, trained and paid professionals, elevating Arizona as a bioscience destination;
• Train more physician specialists and allied health professionals, including pharmacists and advanced practice nurses for Arizona;
• Provide a comprehensive platform for the development of physician-scientists who will drive discovery across basic science studies, patient-oriented clinical research, health services research, and population health;
• Enhance and elevate academic medical excellence across Arizona to national leadership levels; and
• Secure and sustain an operational foundation for the Colleges of Medicine in Tucson and Phoenix that will maximize the value of the ongoing state funding received annually through legislative appropriations.

“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.

Added Michael Waldrum, M.D., UAHN President and CEO, “I’m especially pleased that this proposed transition will infuse stability and energy into our organization. This will benefit our patients, faculty, staff and students as we pursue excellence. Ultimately, we’re moving from a situation in which we can only maintain status quo, to a situation in which we can create a premier Academic Medical Center.”

This proposed transition is occurring amidst a period of profound transformation in health care that is driving organizations to adopt innovative ways to not only improve health care with a strong emphasis on wellness, but to do it at a lower cost.

“With health care here in Arizona and across the nation facing new challenges and opportunities every day, this agreement will allow the Arizona Health Sciences Center and the entire UA to advance our mission to provide education, conduct research and enhance patient care that will transform health care at the state and national level,” said Ann Weaver Hart, President of the University of Arizona. “Combining the world-class care at UAHN and Banner will better meet the needs of patients in Arizona and throughout the region, while also providing tremendous learning experiences for students at the University of Arizona. By forming this collaboration we will accomplish more for Arizona’s residents and for the advancement of medical knowledge and practice than we could do in isolation.”

The University of Arizona Colleges of Medicine and Banner Health have a long history of successful affiliation through the Graduate Medical Education program at Banner Good Samaritan Medical Center in Phoenix. Each year, Banner and the UA Colleges of Medicine collaborate in the training of nearly 260 physicians in five residency programs and in numerous fellowships.

Added Peter S. Fine, President and CEO of Banner, “We’re honored that the UAHN Board of Directors strategically sought Banner to create Arizona’s first statewide health system to help strengthen medical education. Banner’s vision is to sustain a position of national leadership. This opportunity to join with a premier academic organization significantly advances Banner towards this vision. In addition, we’re especially mindful of UAHN’s legacy of excellence in Tucson and throughout the state, which must be maintained, nourished and strengthened.”

Breast cancer treatment

Banner MDA engaged in cutting-edge study

A cutting-edge research study at Banner MD Anderson Cancer Center is testing the safety and effectiveness of a new investigational drug that, when combined with chemotherapy, may make a major difference in treating breast cancer in patients who carry harmful mutations on either the BRCA1 or BRCA2 genes.

The Brocade Study will enroll patients with hereditary breast cancer that is metastatic, meaning it has spread to other parts of the body, or locally recurrent, meaning it has come back in the same original area. These patients also have mutations in the BRCA1 or BRCA2 genes, similar to the kind that actress Angelina Jolie inherited. The study is examining the results of the oral drug Veliparib when taken in combination with chemotherapy treatments.

“These breast cancers can be very difficult to treat with traditional chemotherapy regimens. If Veliparib is found to add to the effectiveness of chemotherapy, it would give patients with BRCA mutations and metastatic breast cancer a new option for therapy,” said Mary Cianfrocca, MD, director of the Breast Cancer Program and medical director of the Clinical Cancer Genetics Program at Banner MD Anderson. Dr Cianfrocca is also the principal investigator for the Brocade Study at Banner MD Anderson.

Veliparib is designed to prevent the cancer cell from repairing itself by blocking a protein called PARP, possibly making the cell more susceptible to anti-cancer drugs. Banner MD Anderson is the only health care facility in Arizona which is offering the study. To learn more about the BROCADE study call 480-256-3420 or visit, www.brocadestudy.com.

Banner MD Anderson, located on the Banner Gateway campus, delivers cancer care to patients in Arizona through the collaboration of Banner Health and The University of Texas MD Anderson Cancer Center. Banner MD Anderson offers focused disease-specific expertise in the medical, radiation and surgical management of the cancer patient. The center uses an evidence-based, multidisciplinary approach to patient care, and provides access to clinical trials and new investigative therapies. Banner MD Anderson also offers state-of-the-art technology for diagnosing, staging and treating all types of cancer. For more information, visit www.BannerMDAnderson.com.

health.education

Record number of physician residents at Banner Good Sam

A historic number of doctors are being trained now for the future of medicine at Banner Good Samaritan Medical Center. There are 291 doctors training in Banner Good Samaritan’s eight medical residency and nine fellowship programs for the 2014-2015 academic training year as part of the hospital’s Graduate Medical Education (GME) program which is accredited by the Accreditation Council of Graduate Medical Education.

“Training these physicians is an important investment in the quality health care for all Arizonans,” said Steve Narang, MD, Chief Executive Officer at Banner Good Samaritan. “Doctors are more inclined to practice medicine near to where they trained, so we’re obviously very pleased by the number of physicians who are training at Banner Good Samaritan.”

The GME program at Banner Good Samaritan is affiliated with the University of Arizona College of Medicine (UA-COM) and has been training physicians over the past 60 years. Recently, Banner and the University of Arizona Health Network (UAHN) in Tucson signed a Principles of Agreement document that is anticipated to lead to UAHN joining Banner Health and a 30 year affiliation commitment from Banner Health to support the UA-COMs in Tucson and Phoenix.

This affiliation will include the operation of academic medical centers connected to the COMs in both cities. Banner Good Samaritan will be established as the academic medical center in Phoenix, and UAHN – University and South campuses will continue serving in that role for the COM in Tucson. Third and Fourth year COM students in Tucson and Phoenix will rotate into clinical areas in Banner Health affiliated academic medical centers.

Much like the evolution of health care, the advancements in medical education are astounding, Narang said, adding that thanks to technology, today’s physician residents and fellows have a wealth of health information and training resources at their fingertips. From smartphones to simulation education, the digital age has transformed medical teaching, he added.

“While technology has most certainly changed the ways in which residents are taught, the core principles, values and standards that define academic medicine at Banner Good Samaritan remain constant,” Narang said. “Banner Good Samaritan’s superior teaching stems from the commitment by physician educators to the highest standards of patient safety and quality throughout the teaching process.”

Following is the list of Residency and Fellowship programs at Banner Good Samaritan Medical Center:

Residency Programs:
· Family Medicine
· Internal Medicine
· Internal Medicine/Pediatrics
· Obstetrics & Gynecology
· Oral Maxillofacial Surgery
· Orthopedic Surgery
· Psychiatry
· Surgery

Fellowship Programs:
· Cardiology
· Interventional Cardiology
· Structural Cardiology
· Endocrinology
· Gastroenterology
· Geriatric Medicine
· Medical Toxicology
· Pulmonary/Critical Care Medicine
· Sports Medicine

health,informatics

UnitedHealthcare, Banner Health Collaborate

Banner Health Network and UnitedHealthcare are launching an accountable care organization (ACO) initiative to provide improved care coordination and enhanced health services to nearly 50,000 UnitedHealthcare plan participants in the region.

Banner Health Network’s (BHN) partnership with UnitedHealthcare will help shift Arizona’s health care system from one based on volume of care to one that rewards quality and value. Banner Health Network and its affiliated physicians will manage all aspects of patients’ care, providing the right care in the right place at the right time. Primary care physicians in the ACO will receive regular patient updates, enabling them to monitor all of the care each patient is receiving, and to maintain all clinical information about each patient in a secure patient registry.

UnitedHealthcare employer-sponsored plan participants who are currently served by BHN’s care providers will not have to do anything differently to receive the benefits of this new model, which include enhanced care coordination and follow-up.

BHN includes 3,000 care providers and 15 hospitals. BHN was one of the first care provider networks in Arizona to adopt the principles of accountable care, and one of the original 32 organizations nationally selected by the Centers of Medicare & Medicaid Services (CMS) to demonstrate the Medicare Pioneer Accountable Care Model. BHN was one of the top performers among this select group in terms of achieved savings in the first year. Using the same technology, clinical models and engaged care providers, BHN has been able to adapt these value-based learnings to better serve people enrolled in commercial health plans, such as those of UnitedHealthcare.

“Banner Health Network is pleased to work with UnitedHealthcare to deliver value-based health care options for Arizona employers and their employees,” said Chuck Lehn, CEO, Banner Health Network. “We anticipate Banner Health Network’s 3,000 care providers will manage the care of more than 300,000 people who are enrolled in a variety of risk-based health plans. We use evidence-based guidelines to close gaps in care across our population. Yet, we also do not forget that each of our patients is unique and needs individual support to meet personal health goals.”

UnitedHealthcare and Banner Health Network will coordinate evidence-based care, ensuring that the primary care physicians, specialists and facilities are aligned with the Institute for Healthcare Improvement’s (IHI’s) “Triple Aim” objective: increase patient satisfaction, improve the health of the population and reduce the cost of health care.

Care providers will be eligible for payment incentives based on meaningful improvements in measures such as hospital readmission rates, disease management and prevention, patient safety and care delivery, as well as total cost savings and patient satisfaction.

“UnitedHealthcare continues to work with care providers statewide to help enhance health services and improve coordination of care for patients,” said Beth Soberg, president and CEO, UnitedHealthcare of Arizona. “We believe our accountable care collaboration with Banner Health Network will deliver enhanced quality, better outcomes and greater efficiency for our health plan customers in Arizona.”

This new ACO relationship is the latest in a series of partnerships UnitedHealthcare has launched in Arizona, all aimed at increasing quality and coordinated care. UnitedHealthcare recently announced similar arrangements with two other care provider networks in the Tucson and Phoenix areas.

Nationwide, more than $30 billion of UnitedHealthcare’s annual physician and hospital reimbursements are tied to accountable care programs, centers of excellence and performance-based programs. The company projects this will reach $65 billion by 2018. For more information about UnitedHealthcare’s accountable care initiatives, visit www.AccountableCareAnswers.com.

UnitedHealthcare serves 1.6 million people in Arizona with a care provider network of 78 hospitals and more than 14,000 physicians statewide.

banner

Banner Estrella Medical Center Expansion and Renovations

Developer: Banner Health
General contractor: McCarthy Building Companies, Inc.
Architect: SmithGroup JJR
Location: 9201 W. Thomas Rd., Phoenix
Size: 279KSF
Value: $161M
Start/Completion: August 2012 to April 2015; Tower addition completedin March 2014
Subcontractors: University Mechanical, Wilson Electric, E&K of Phoenix, KT Fabrication, Able Steel

Expansion of the Banner Estrella Medical Center includes a second six-story, 279KSF patient tower, which adds 178 new patient beds to the campus. Within the new patient tower, the lower level through fourth floor will be completely built out, and the fifth and sixth floors will be shelled for future build-out as a patient division allowing the entire facility to ultimately offer the community a total of more than 400 patient beds. As nearly 100,000 patients passed through the Banner Estrella emergency room last year, the hospital was in dire need of a capacity increase. The new tower will contain additional obstetrical suites, additional neonatal intensive care unit capacity, new cardiac catheterization lab, additional medical imaging capabilities and added surgical suites. Approximately 97KSF of renovation is also planned within the existing facility now that the patient tower is occupied. Crews are remodeling the hospital’s existing emergency department, pharmacy, lab, materials management and culinary area. To accommodate the new patient tower, Banner also expanded the central plant. The project also included the construction of two additional parking structures, accommodating approximately 800 spaces for visitor and staff use. The nearly 300KSF project is expected to generate hundreds of construction jobs over three years.

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Banner CORE Center for Orthopedics Expands

Integration, collaboration and education are hallmarks of the Banner CORE Center for Orthopedics, a co-management partnership linking The CORE Institute and Banner Health. Recently, the relationship between the two healthcare leaders was strengthened with the expansion of Banner CORE Center to Banner Good Samaritan Medical Center in Phoenix, Arizona.

One of the state’s oldest and most well-regarded academic teaching hospitals, Banner Good Samaritan, has spent more than six decades teaching and training the doctors of tomorrow. The partnership with The CORE Institute enhances the hospital’s scope of orthopedic services, including expanded orthopedic residency and fellowship training programs and a more robust framework for orthopedic trauma care.

“We’re building upon Banner Good Samaritan’s reputation as a provider of superior medical education and Level 1 trauma care by creating a more comprehensive program capable of managing even the most complex orthopedic cases,” said David Jacofsky, MD, Chairman and CEO of The CORE Institute. “At Banner Good Samaritan, the Banner CORE Center for Orthopedics model will focus on complete musculoskeletal health with sub-specialty programs for everything from spine, hand, and foot and ankle care, to sports medicine, joint replacement and trauma.”

Expansion to Banner Good Samaritan Medical Center, which began with orthopedic trauma coverage in October followed by the launch of elective procedures in February, comes on the heels of the successful implementation of Banner CORE Center for Orthopedics at four other Banner Health facilities across metropolitan Phoenix: Banner Del E. Webb Medical Center in Sun City West, Banner Thunderbird Medical Center in Glendale, Banner Estrella Medical Center in West Phoenix, and Banner Desert Medical Center in Mesa.

DeLyle Manwaring, Senior Vice President of Hospital Service Line Integration for The CORE Institute, highlights improved quality of care, better outcomes and enhanced patient experience as key benefits of the Banner CORE Center collaborative model. According to Manwaring, this manner of bringing together physicians and hospital leaders with a shared objective of improving patient care, outcomes and overall volume does not exist elsewhere in the Phoenix market.

“We’re providing cutting-edge care via an innovative model based on the highest level of collaboration,” he said. “Other healthcare organizations across the country are watching what we’re doing, and they have expressed interest in replicating the model being implemented at Banner Good Samaritan Medical Center.”

Being at the forefront of innovation, both in practice and principle, isn’t new to either The CORE Institute or Banner Health. The organizations’ willingness to innovate, push boundaries, explore all options, restructure when and where necessary, and settle for nothing less than the absolute best has earned much deserved distinction in their respective fields. Their collaboration sets a new standard for orthopedic care in Arizona and beyond.

“Given the hospital’s scope of services and position as a teaching hospital, the co-management model for musculoskeletal health at Banner Good Samaritan requires some restructuring in both orthopedic care and education,” noted Jacofsky. “This will touch multiple aspects of the hospital, but the end result will solidify a reputation as a world-class teaching hospital.” Patients often turn to the very hospitals in which physicians train.

“Banner Good Samaritan Medical Center has a long-standing reputation of being the place where the sickest patients from across the region come for care,” commented Steve Narang, MD, CEO of Banner Good Samaritan Medical Center. “This isn’t just a coincidence.”

Indeed, Banner Good Samaritan’s position as a destination medical center is the well-deserved product of a commitment to medical excellence. Banner Good Samaritan invested more than $40 million last year alone in physician residency programs spanning 17 clinical specialties, including orthopedics. Jacofsky says the Banner CORE Center partnership will enhance orthopedic training by giving residents and orthopedic fellows greater access to highly trained specialty teams, including those dedicated to trauma care at the Good Samaritan facility.

“Orthopedic trauma cases at Banner Good Samaritan have tripled in just the first 90 days of this venture,” noted Jacofsky. “Numbers don’t lie. There’s a reason more people are coming to this hospital.”

Creating top-notch teaching programs attracts the best and brightest physicians, nurses, therapists, pharmacists and others who are committed to delivering excellent care, conducting medical research and advancing the field of medicine.

“Our partnership with The CORE Institute is an investment that will ultimately shape the entire service line and distinguish Banner Good Samaritan as a leader in orthopedics,” said Narang. “As such, we will continue to attract leading orthopedic specialists and, in turn, patients who want the best possible care.”

The inevitable result of integrating clinical care teams, enhancing medical education, investing in the tools and technologies to deliver leading-edge care, and centering the entire orthopedic service line on evidence-based protocols is an unmatched, highly-coordinated care experience.

While still in its infancy, the co-management model at Banner Good Samaritan has resulted in enhanced orthopedic education, expanded capabilities, an influx in physicians on staff and a new framework for educating patients.

Banner CORE Center for Orthopedics treats injuries and disorders affecting the bones, joints, muscles, ligaments, tendons and cartilage. From total and partial joint replacements, to sports injuries, congenital conditions, arthritic and degenerative disorders, fractures and spine conditions, Banner CORE Center has the experience and expertise to treat virtually any orthopedic injury or ailment.

health

Banner Health teams up with Summit Healthcare

Summit Healthcare announced they have entered into a collaboration agreement with Banner Health to provide continuing care to the patients who are seen at Summit Healthcare but need a higher level of care that Summit Healthcare may not be able to provide.

Across the country, healthcare facilities are joining forces to create large networks of healthcare providers and transitioning to accountable care organizations, focused on increased collaboration.

Summit Healthcare identifies Banner Health as a preferred provider for a higher level of specialty care and telemedicine health care services. Banner Health provides patients in the White Mountain communities immediate access to a tele-psychiatrist or tele-neurologist through a real time video conferencing unit located at Summit Healthcare’s Emergency Department.

“This collaboration is an example of how healthcare organizations can work together to provide quality healthcare services that one facility may not have available to our communities,” says Ron McArthur, CEO of Summit Healthcare, “ultimately the residents of our communities benefit when resources are used to expand rather than duplicate services.”

Banner Health is Arizona’s second largest private employer operating 16 hospitals in the state (Casa Grande Regional Medical Center will become part of Banner on June 9), as well as in health centers and clinics and other related services. “Summit Healthcare provides outstanding care to its community and we’re very pleased and honored to collaborate as their partner to provide broader access through expanded services in the area,” said Banner’s Arizona East Region President Becky Kuhn. “We look forward to continued discussions about further opportunities for collaboration in support of Summit Healthcare’s mission to serve residents of and visitors to the White Mountain community,” Kuhn stated.

health,informatics

Banner adds Nardoci as senior VP

Jeffrey C. Nardoci has joined Banner Health and its top leadership team as Senior Vice President/Chief Strategy and Marketing Officer. Nardoci will become a member of Banner’s senior management team, chaired by Banner President/CEO Peter S. Fine. Nardoci’s position is new to Banner Health.

Banner Health has rapidly evolved from a health system defined primarily by hospital care into a fully integrated system capable of highly coordinated care and wellness management in both hospital and community settings. Along with the addition of more hospitals, this evolution has included significant expansion of services to consumers. This included growth of Banner Health Network, which serves more than 300,000 beneficiaries in numerous private and government insurance plans, and Banner Health Centers and Clinics, where Banner Medical Group doctors saw more than two million patient visits in 2013.

“Banner has emerged as a leading health system in the nation, and I’m really honored to be joining the Banner team,” said Nardoci. “While it may seem like a daunting challenge to have an influence on potentially hundreds of millions of touch and decision points with consumers and their families, it’s the kind of challenge our team is up for. We view this as an exciting opportunity for the company.”

Most recently, Nardoci served from 2009 to present as Corporate Officer, Vice President Worldwide Marketing & General Manager Surgical Specialties at Solta Medical, Inc., a publicly traded company. Solta, a global leader in the aesthetics market, provides innovative anti-aging solutions for patients that enhance and expand the practice of aesthetics for physicians in more than 100 countries.

From 2002 to 2008, Nardoci held a variety of vice president positions with a strong strategy and marketing focus at Bausch & Lomb, a global eye health company. Prior to that, Nardoci served in executive leadership positions with Meridian Euro RSCG from 1997 to 2002, Bausch & Lomb from 1993 to 1997, Nabisco Food Groups from 1986 to 1993 and Xerox Corporation from 1983 to 1986.

“Jeff has a strong, impressive track record in helping major organizations develop and implement strategies and tactics that focus on consumer choice and behavior,” said Banner Health President/CEO Peter S. Fine. “As the health care industry transforms to deliver better care and enhanced service for a lower cost, consumer choice will make the difference between organizations that are highly successful, and those that aren’t.”

Nardoci began his career at Banner on Monday, April 14. His leadership role will include four consumer-oriented departments at Banner, including Branding, Public Relations, Service Excellence and Strategy and Planning. Each of these departments is overseen by a vice president who will report to Nardoci.