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Lawmakers Express Concern Over Cost of Medical School, Private Partnership

 

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Banner Health wants $500 Million in Arizona tax dollars for partnership

PHOENIX (By Mary Jo Pitzl, Arizona Republic) March 28, 2007 — Lawmakers turned a skeptical eye Tuesday to the growing budget requests and structure of the medical college soon to open in downtown Phoenix.

During an informational hearing, they questioned why the plan to bring the University of Arizona College of Medicine to a downtown Phoenix campus had grown from an initial investment of $7 million in state dollars to what House Speaker Jim Weiers painted as nearly $500 million, citing university figures.

They also questioned why the college chose to partner with Banner Health Care rather than Maricopa Integrated Health System.

 

Weiers, a Phoenix Republican, pressed for details, saying it made little sense to partner with a private hospital that is out to make money as opposed to the publicly supported county hospital.

Weiers said he worries the new hospital that will be built through the UA-Banner agreement will strip lucrative business from the county hospital, leaving it only with unprofitable cases.

Earlier, Gary Stuart, a member of the state Board of Regents, said the hospital is being built to provide a clinical-training opportunity for medical students.

The process was designed to ensure that a downtown medical campus wouldn't intrude on the business of other hospitals in or near downtown, he said.

The Arizona Board of Regents oversees UA Medical College.

Stuart also told the meeting of Republican and Democratic legislative leaders that the university never intended to stop at a $7 million appropriation. That money was to launch the college, which is expected to admit its first class of students in July.

UA is seeking $25 million in the coming year's budget to pay for expansion of the downtown medical college.

It is one step in a long-term plan to build the campus, which will be along Van Buren Street east of Seventh Street.

Stuart said that no public money will be used to build the hospital. Banner has pledged to bring $250 million to that project.

While the project drew the support of Senate President Tim Bee, R-Tucson, House Republican leaders said they intend to look further into the deal.

"This is like a bad piece of meat: The more you chew it, the worse it tastes," Weiers said.

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