Tag Archives: Peter S. Fine

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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.”

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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.

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Casa Grande Medical Center, Banner Strike Deal

Regional Care Services Corporation, the parent company of Casa Grande Regional Medical Center (CGRMC), and Banner Health have signed a letter of intent for the acquisition of Casa Grande Regional Medical Center by Banner.  The acquisition is subject to obtaining all necessary regulatory approvals, and is expected to be completed during the spring of 2014. Banner has also agreed to provide interim funding as needed in order for CGRMC to continue regular operations until the acquisition is complete.

Rona Curphy, President and CEO of CGRMC, stated, “We are excited to partner with Banner Health in order to continue providing outstanding and high quality care to our community. CGRMC’s mission has always been to make a positive difference in the lives of those we serve through compassion and excellence in patient care. This fits perfectly with Banner’s mission as well. Furthermore, joining with Banner allows CGRMC the best opportunity to grow this facility in the long term. We look forward to a bright future.”

In choosing to join Banner, recognized as one of the leading health systems in the nation for clinical quality, the CGRMC board is confident that Casa Grande and its surrounding communities will continue to have access to outstanding medical care and service.

“We couldn’t be more pleased to have this opportunity to build on the strong foundation provided by Casa Grande Regional Medical Center to expand Banner’s non-profit mission of excellent patient care to the community of Casa Grande,” said Peter S. Fine, Banner Health President and CEO. “Community residents can count on the full suite of clinical performance processes and technologies that are the foundation of Banner’s ability to provide industry-leading care.”

In the coming weeks a comprehensive plan will be developed to successfully navigate this purchase through the myriad of regulatory and financial details.