Unanimous Council Votes for University
Doctors perform surgery at the University of Colorado Hospital
A unanimous City Council voted Tuesday to enter into exclusive negotiations with the University of Colorado Hospital and Poudre Valley Health System to operate Memorial. The decision is arguably the most significant milestone yet in a 2-year process to determine Memorial’s future.
The plan has so far garnered widespread political support and provides a level of clarity for a health system that has suffered under uncertainty and city ownership. Questions and potential hurdles remain in the months ahead, but overall there appears to be a sense of optimism in the community about Memorial’s future.
Indeed, the University of Colorado Hospital, Poudre Valley Health System, and Children’s Hospital Colorado are all nationally recognized, nonprofit institutions with similar values as ours.
So, in light of this major decision, let’s step back and take stock, starting with the proposal itself.
The proposal
The University of Colorado Hospital submitted the proposal to the city, but the proposal itself calls for Memorial to be part of a not-yet-formed entity known as the University of Colorado Health System. This system would be jointly governed by UCH, Poudre Valley, and the University of Colorado, which is not directly affiliated with the hospital.
Memorial’s pediatric care would go to Children’s Hospital, which would sublease those operations in a separate agreement with University, not the city.
Memorial would maintain its own corporate identity and have a local board, but major fiduciary and strategic decisions would be made at the system level.
The proposal calls for growing Memorial’s marketshare and adding jobs in the coming years, and it includes a new medical school in Colorado Springs. The city would also receive millions up front and in annual payments.
The negotiations
In the next few months, negotiating teams from the city and University will work through the specifics of a lease transaction. These give-and-take discussions will mostly be confidential, and they will cover a variety of topics such as employee retention, quality of care, PERA, and financial contributions to the city.
When the city asked hospitals to submit bids, it included a draft lease for them to respond to. University, in its proposal, agreed to much of what was in that lease, which may speed the process up. On the other hand, any negotiation process is at risk of sticking points.
The city’s negotiating team is expected to include City Attorney Chris Melcher, City Councilors Brandy Williams and Merv Bennett, and outside legal counsel that specializes in these kinds of transactions.
The vote
Should an agreement be reached, the City Council has pledged to let Colorado Springs voters have the ultimate say. When that is, however, remains in question. Both University officials and some members of City Council have indicated their desire to get this done as soon as possible, but the only regularly scheduled election is in November. A sooner vote would depend on getting the lease done and the deadlines and expense for holding a special election.
It is too early to tell whether a ballot measure might face formal opposition. Other hospitals participating in the bidding process are free to oppose or campaign against the winner. When officials for HCA/HealthONE, a for-profit system, were asked if they’d take action against the winner, they said the decision had not been made.
The Questions
The possibilities of this new system are exciting, combining the best of community-based care and academic medicine in a model that stretches from New Mexico to Wyoming. Yet with any major change, there are understandably many questions and concerns. Will programs stay or go? Will people lose jobs or be given new opportunities? Who will decide what? Many of these answers won’t come overnight, or even on election day.
We will try to answer these questions when we can.
In the meantime, two things are not in question. One, Memorial can no longer survive as a city enterprise, and staying the same is the worst thing that could happen. Two, every single health system participating in this process (Memorial, University, Poudre Valley and Children’s) provides highest quality health care and does amazing things.
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