MEMORIAL HOSPITAL WEEK: HCA tids & PERA bits

9/26/11

Colorado Springs Business Journal / Dec 9, 2010

Memorial Board of Trustees in Colorado Springs rejects HCA

by Amy Gillentine

The Memorial Board of Trustees views HCA's interest in purchasing Memorial Health System as the "wolf at the door," said Chairwoman Arlene Patterson Stein.

"We speak as one voice, and we would like council to affirm its commitment to the commission's work and it recommendation," she said. "We don't support the HCA attempt."

The Memorial Citizens' Commission spent nine months researching options for Memorial's future. It recommended to the Colorado Springs City Council that the hospital become an independent nonprofit system.

In recent weeks, HCA reaffirmed its interest in purchasing the system, and asked for a new process that would allow it to participate. The commission did not entertain any offers from for- profit systems, but did explore the option with mergers-and- acquisition expert David Burik from Navigant Systems.

Stein made her comments at a joint city council-Memorial board meeting held today to discuss the details of a plan to create the independent nonprofit.

"The devil's in the details," said Councilman Sean Paige. "And we need those details if we want the voters' support."

Paige has raised questions this week about the commission's decision-making process, suggesting the commission was led to the nonprofit choice by Memorial's administration.

Jim Moore, vice chair of the Memorial Board, brought up the doubts in the community that the council was committed to moving ahead with the commission's proposal. He asked the council to vote on the recommendation to erase all the doubt.

Mayor Lionel Rivera agreed that the city council would put a resolution on the agenda for its next council meeting.

"We could pass a resolution, but that's not going to stop doubters in the community," he said. "And it won't stop some outside entity from pouring money into the election, and trying to defeat it."

He suggested a task force to discuss the major issues - creation of a new nonprofit corporation, defeasance of bonds, revenue commitments from Memorial to the city. Once that task force completes its work, Rivera said that would be the time to discuss a resolution. The task force will be made up of three city council members, three Memorial board members, as well as representatives from Memorial.

Commission consultant Larry Singer will also be a part of the discussions.

Another big issue is PERA, the state employees' retirement plan. At this point, there is no information about how employees could be switched to another plan. Memorial employees cannot stay in the retirement plan once the city no longer owns the hospital. PERA has indicated that it will be mid-January before they can advise the city about how to proceed.

"To give you a little bit of comfort, the actuary doing this is PERA's actuary, so they have all the data," said Pat Kelly, city attorney. "We'll have that answer well in advance of the election."

PERA will give a calculation of the unfunded liability and the amount needed to move employees to a new retirement plan.

"There's so much uncertainty around this, it's important to know that the board is committed to what's best for employees," said Memorial board member Vic Andrews.

Paige suggested there wasn't enough time to discuss the issues and put it on a ballot.

"I'm concerned about the timeline," he said. "I see a lot of potential problems."

Rivera said that he could always call a special meeting in February, if needed, to iron out final details.

Copyright 2010 Dolan Media Newswires

MEMORIAL HOSPITAL WEEK: WWTD?

9/17/11

long ago and far away,

i was there, and still remember

it seems like only yesterday

with time as history's teacher

at least once every single day

i think of him and wonder

what would ted do?

♡ ♡ ♡ ♡ ♡ ♡ ♡ ♡

Should city sell hospital, or rein it in?

Panel will see

by Amy Fletcher  

Whether Colorado Springs should continue to own Memorial Hospital and how the hospital should be governed will be the focus of a work group appointed by Mayor Mary Lou Makepeace and hospital board chairman Harlan Loomas.

The plan, announced Tuesday at a joint meeting between the hospital board and City Council, may eventually offer a definitive answer to an ongoing political dilemma: What role should the city play regarding one of its largest hospitals? City ownership of Memorial - debated on and off for years - resurfaced as an issue in mayoral elections earlier this year.

Deciding who governs and runs the hospital is "part of keeping the hospital in a position where it can provide services without tapping into the general funds of the city," Makepeace said Tuesday.
Memorial made $19 million last year and expects to turn an $11 million profit this year.

The City Council and hospital board are making long-term strategic plans in the face of a changing industry. Experts expect hospitals nationwide to face future fiscal challenges as payments from the federal government decline and managed-care health insurance plans become more popular.

"You generally want issues that are long-term and more complex to be made close to, but outside, the political system," said consultant Michael Annison, who is helping the hospital develop its strategic plan. The public sector tends to use "piecemeal approaches" said Annison, president of The Westrend Group in Denver.

Hospital Executive Director Bob Peters said shedding city ownership would allow Memorial to "conduct some affairs in privacy and in a responsible manner."

But Councilman Ted Eastburn said Memorial's continued profitability while other hospitals around the country are losing millions is a testament to how well the system is working.

"I would have to see completely new, and at this point unimaginable data, to convince me to support transfer of ownership," he said.

Annison said the community's desire to retain local control of the facility makes any sale to a for-profit entity, as proposed during the election, less desirable. Other possibilities for making the hospital more autonomous include creating a nonprofit organization or a hospital authority that could collect taxes.

Councilman and hospital board member Lionel Rivera said he would support City Council serving as the hospital's board of directors as it does for Colorado Springs Utilities. In that role, the council sets utilities rates, approves budgets and makes other major decisions on the direction of Springs Utilities.

Councilwoman Joanne Colt said reducing the city's oversight of the hospital might be appropriate.

"There may be some conflicting goals, and we need to examine it," she said.

Councilman Richard Skorman agreed: "The hospital should be independent enough not to be subjected to political whims that affect its financial viability."

The work group appointed by Makepeace and Loomas will be expected to report back to the hospital board and City Council by March 1.

- Amy Fletcher may be reached at 636-0190 or amyf@gazette.com.
Edited by David Fondler.
Headline by Barry Noreen

Hospital Issues:  Developing a long-term strategic plan for Memorial Hospital, which is owned by the city.  Memorial's profits this year are expected to drop to $11 million from $19 million last year.

Alternatives:  Changes to the ownership structure of the hospital.

What's Next:  Mayor Mary Lou Makepeace and hospital board chairman Harlan Loomis to develop a long-term Memorial strategic plan.  Working group to report back to the hospital board and City Council by March 1.

-The Gazette

Timeline

Memorial Hospital is clearly one of the city's largest assets. Yet ongoing city ownership - and the possible sale of the hospital has been an issue from outside and within City Hall.

June, 1999: Pennsylvania-based Universal Health Services offers to purchase the hospital for $225 million. The conversations have been brief: No thanks, the council says. "What a laugh. What a joke," Councilman Lionel Rivera said. "I don't think the hospital is for sale," Rivera said.

Spring, 1999: Mayoral candidate Will Perkins makes the sale of certain city assets, including the hospital, a campaign issue. "We need to remember what the main function of city government is: public safety and infrastructure," Perkins said.

October, 1998: Council members Dawson Hubert and Bill Guman propose two ballot measures. The first would ask voters in April whether the city should sell the hospital. The second would determine whether to replace the 15-member hospital board of trustees with the City Council. At the same time, Mayor Mary Lou Makepeace planned to appoint a nine-member Blue Ribbon Commission to look into ongoing city hospital ownership.

December, 1997: City Councilman Lionel Rivera proposed that the profitable hospital to make a $30 million endowment to establish a foundation that would issue grants to human-services agencies that focus on health, the elderly and youth.

April, 1996: Memorial Hospital trustees reject an offer for either a joint venture or acquisition by Louisville, Ky.-based Columbia/HCA Healthcare Corp., the nation's largest hospital chain. Memorial's trustees rejected all alternatives, saying none would expand the hospital's services or improve patient care.

January, 1993: The council rejects a request by Councilman David White, who wanted a question on the municipal ballot that would have asked city voters whether they wanted to sell Memorial. The city has operated the hospital since the 1940s. White argued that the city should concentrate on basic services such as police and fire protection - and leave health care to the private sector.

- Gazette archives

FindArticles / News / Gazette, The (Colorado Springs) / Dec 8, 1999