Banner Health merges with Sun Health

October 2, 2007

By hammersmith

[Source: Ken Alltucker, The Arizona Republic] Banner Health plans to merge with Sun City’s Sun Health hospital network in a deal that would expand the reach and power of the Valley’s largest hospital group.Banner, which now operates eight Valley hospitals, has agreed to acquire assets valued at about $400 million from the Sun Health network, including Sun Health’s Del E. Webb and Boswell hospitals in Sun City. The deal would further solidify Banner’s position as the Valley’s largest hospital group, creating a formidable 10-hospital organization with about 25,000 employees and 3,356 beds with significant influence over patient care in the nation’s second-fastest-growing metropolitan region.

Financial terms between the nonprofit hospital groups were not released. Hospital executives expect it will take six to nine months to complete the deal, which must pass muster with the Federal Trade Commission and Arizona health regulators.Sun Health President and CEO Leland Peterson said Sun Health agreed to combine forces with Banner because of the larger hospital group’s financial strength and advanced technology.