Physicians have asked the Colorado attorney general to intervene in a transaction between Denver's third-largest hospital system and a foundation, saying the transaction is an "outrageous" sleight of hand, according to a Denver Post report.
Sisters of Charity of Leavenworth is trying to buy control of two hospitals within the Denver-based Exempla Healthcare system. Community First Foundation, the hospitals' current operator, would receive $280 million in the transfer of control.
The sisters are one of two parts of Exempla's governing body, and Community First is the other. Opponents to the deal say the foundation is trying to sell assets it doesn't fully own, and the sisters are still trying to take control without necessary state approval. They want the state to review the deal and declare it a violation of an arbitrator's previous ruling and state non-profit laws.
In 2009, a court-ordered arbitrator ruled against a similar deal. The sisters first proposed buying the foundation's membership in Exempla — effectively taking full control of the group — in 2007. Opponents filed a lawsuit, saying Community First had no right to sell its membership. The suit also opposed the system's plan to follow church doctrine and end reproductive services because it violated Exempla's original non-profit commitment to healthcare.
A binding arbitrator ordered by Denver District Court agreed with some of the objections in 2009. He ruled the foundation couldn't take money in exchange for its membership rights.
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Sisters of Charity of Leavenworth is trying to buy control of two hospitals within the Denver-based Exempla Healthcare system. Community First Foundation, the hospitals' current operator, would receive $280 million in the transfer of control.
The sisters are one of two parts of Exempla's governing body, and Community First is the other. Opponents to the deal say the foundation is trying to sell assets it doesn't fully own, and the sisters are still trying to take control without necessary state approval. They want the state to review the deal and declare it a violation of an arbitrator's previous ruling and state non-profit laws.
In 2009, a court-ordered arbitrator ruled against a similar deal. The sisters first proposed buying the foundation's membership in Exempla — effectively taking full control of the group — in 2007. Opponents filed a lawsuit, saying Community First had no right to sell its membership. The suit also opposed the system's plan to follow church doctrine and end reproductive services because it violated Exempla's original non-profit commitment to healthcare.
A binding arbitrator ordered by Denver District Court agreed with some of the objections in 2009. He ruled the foundation couldn't take money in exchange for its membership rights.
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