MHS lease to UCH completed
Monday, October 01, 2012
City Attorney Chris Melcher announced today at 2pm, that the proposed transaction of the City of Colorado Springs to lease Memorial Health System to University Colorado Health has been successfully completed as of today, October 1, 2012, on schedule and as promised to the voters and the community. Both the City and UCH have confirmed and agreed that all funds have been transferred to the appropriate parties, all necessary documents have been singed and completed and all appropriate licenses have been transferred as required for the uninterrupted continuing operations of MHS. UCH has assumed responsibility for the operations of MHS as of today, pursuant to the terms of the Operating Lease approved by City Council and the voters. All former MHS employees are now employed as members of the UCH system, and will continue with their important work service the patients and their families in our Region.
The closing of the transaction today successfully included:
- Final signatures and approval of the 40 year lease of the operations of MHS to UCH, under the terms of the approved Operating Lease and the Integration and Affiliation Agreement previously approved.
- Receipt by the City of a $259 million “up front” payment from UCH, which has been placed in an Escrow Account for future use of the City Healthcare Foundation and resolution of the PERA dispute.
- Transfer of over $340 million from MHS to an Escrow Account to defease in full and pay off all existing bonds and indebtedness of MHS.
- Creation of the City Healthcare Foundation, appointment of the Initial Board, and filing of the Articles of Incorporation and the Initial Bylaws with the Secretary of State.
- Transfer of over 4000 employees from MHS and the City to their new employment with UCH in the same positions and with the same compensation.
- Assignment of over 1000 contracts, leases, vendor agreements, physician agreements, licenses, and other operational and legal obligations from MHS to UCH with no disruption.
- Creation of the new “MHS-UCH Local Board” to oversee and govern the “New Memorial” operations, subject to oversight by the UCH System Board.
- Continuing oversight by the City of the “Old Memorial” Enterprise activities and final resolution of any remaining obligations.
The Mayor commented, “This is an historic day for our City and we are grateful to the voters and the community for their trust in us on the transfer of MHS operations to our new partner UCH. The MHS-UCH partnership will reap numerous benefits for our entire region in the coming years, both in the increased quality of healthcare for our community as well as in the economic benefits that future generations will enjoy from a branch medical campus, advances in healthcare technology, and new jobs as MHS improves and grows.”
City Attorney Chris Melcher said, “I am very pleased we were able to deliver on our promise to the voters and the community - and complete our partnership with UCH on schedule with all of the benefits and opportunities previously approved. It is a thrilling day for our entire community to begin this new partnership with UCH. Today marks the beginning of a bright future for all of us – patients, families, staff, physicians and community members – sure to bring higher levels of healthcare service and quality of care, advanced technology, and growth of jobs and opportunities in the health services. Just as exciting, our agreement promises that the City will soon be home to a new branch medical campus at UCCS, which will increase the stature of our City, provide more highly trained physicians to the community and potentially increase the opportunities for healthcare technology development here in our region. I want to thank all the people on the negotiation teams, for both the City and UCH, who have worked so hard to make this dream a reality. We have found the very best partner in the country to guide us through the future of healthcare, and we are all now committed to the success of the “New Memorial” in our community.”
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