The proposal calls for UC Health—a system created by the joint operating agreement between the University of Colorado Hospital and the Poudre Valley Health System—to make an initial $259 million payment to the city followed by monthly payments of $467,676. The initial payment includes $185 million to cover pension obligations.
UC Health has also committed to making some $1.1 billion (about $28 million annually) in capital improvements to the Memorial system, providing $3 million a year for 40 years to develop a Colorado Springs branch of the University of Colorado Medical School, and keeping Memorial's 5,000 employees on staff.
Also in the works is a plan for Children's Hospital Colorado—a neighbor of the University of Colorado Hospital on the Anschutz Medical Campus in Aurora—to sublease Memorial's approximately 100 pediatric beds.
Operations would be governed by an 11-person board and, to maintain local control, it's required that at least seven members be residents of El Paso County, Colo. The former hospital board came under fire recently for approving a $1.15 million severance package for outgoing Memorial CEO Dr. Larry McEvoy.
The Colorado Springs City Council has a public hearing on the proposal scheduled for June 12. The council will meet again June 26 to take action on putting the matter before voters in a special Aug. 28 election via mail-in ballot, according to a city news release.
UC Health was on of five entities that bid on leasing the Memorial system, and the City Council approved the bid on Jan. 10.