Attorney general OKs SCL’s hospital deal
Last Updated: 11:37 October 12, 2012
SCL Health System - a faith-based, nonprofit health-care group - will pay its nonprofit partner Community First Foundation in Arvada $275 million over 20 years as part of the governance change transaction.
Community First Foundation received an initial payment of $45 million now that the transaction is complete. SCL Health System has about 750 people in offices in Broomfield and Denver after a headquarters move from Lenexa, Kansas, earlier this year.
The transaction meets the relevant criteria of the state hospital transfer act, according to John Suthers, Colorado’s attorney general. All transactions involving the sale, transfer, lease or other disposition of 50 percent or more of the assets of any hospital in Colorado are reviewed by the attorney general’s office, according to the attorney general’s website.
Community First Foundation will see new financial resources to promote health and wellness in the Denver metro area as a result of the transaction, according to the press statement.
“The transactions permitted by the attorney general’s decision will greatly benefit our local communities,” Bob Ladenburger, president and chief executive of Exempla Inc., said in a press statement “We look forward to continuing our mission, with the support of SCL Health System, as a leading, nonprofit health provider dedicated to the Denver metro area.”
As a result of the transaction, SCL Health System and Community First Foundation each remain members of Exempla Inc., which is governed by a community-based board of directors, according to the press statement. SCL Health System will name nine out of 10 directors to a community board that oversees Exempla Good Samaritan Medical Center in Lafayette, Exempla Saint Joseph Hospital in Denver and Exempla Lutheran Medical Center in Wheat Ridge as well as the Exempla Physician Network of more than 100 clinics, according to the press statement. Community First Foundation will name one director to the board.
SCL Health System and Community First Foundation currently have five directors each on the Exempla board. Exempla will keep ownership of its assets and SCL Health System will continue to oversee operation of Exempla facilities, as it has since 2010, according to the press statement.
Of 11 public comments filed with the attorney general’s office, 10 were in favor of the transaction and one opposed it, according to a decision document posted on the attorney general’s website.
Of the $45 million payment to Community First, $25 million is dedicated specifically to communities served by Exempla Lutheran Medical Center, according to the press statement.
SCL Health System is a $2.7 billion network that operates 11 hospitals, four “safety net” clinics, one children’s mental health center and more than 100 ambulatory service centers in four states – California, Colorado, Kansas and Montana. It was founded by the Sisters of Charity of Leavenworth, who opened their first hospital in 1864 in Kansas. The health-care group employs more than 8,000 people in Colorado.
More breaking news...
CenturyLink upgrading 'Net service in Lyons
Plans call for hotel, offices on Baseline
PUC’s muni ruling leaves Xcel satisfied