Exempla sued, arguing that the transfer was illegal under rules for not-for-profit entities and a breach of Exemplas fiduciary duties.
It would have, in effect, given total control of the system to Sisters of Charity and make all our hospitals Catholic, said Exempla CEO Jeff Selberg. In addition to its sponsorship agreement, Sisters of Charity also owns one of the three Exempla hospitals, St. Joseph Hospital in Denver. This decision gives us a platform to work with our sponsors as we move forward.
The arbitration judge ruled that Community First Foundation could transfer its sponsorship to Sisters of Charity, but for no monetary sum.
In light of the arbitrators stipulation that no value can be assigned to the transfer, the leadership of both organizations is working diligently to determine next steps, according to a joint statement from the foundation and Sisters of Charity. The sponsors remain united in their view that the membership transfer is necessary to maintain the vitality of Exempla hospitals and support critical services in the broader Denver metropolitan community.
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