Bids from five competing health systems interested in operating city-owned Memorial Health System in Colorado Springs, Colo., were unveiled yesterday, with each proposing unique arrangements, according to a Denver Post report.
1. Sisters of Charity of Leavenworth Health System — the operator of Denver-based Exempla — offered a $400 million lease along with $100 million in capital investment over five years and an increase in charity care. The system also offered a partnership, rather than lease option, to Memorial.
2. Englewood, Colo.-based Centura proposed that Memorial become an independent and non-profit system that works in partnership with Centura’s Penrose-St. Francis Hospital, also located in Colorado Springs. That partnership would merge the hospitals’ trauma and rehabilitation services. Dollar amounts were not included in the news report.
3. Denver-based HealthONE/HCA proposed an upfront payment of $500 million to lease Memorial for 40 years. It also made a $1 billion capital commitment and plans to expand charity care. As a for-profit, HealthONE would also provide tax revenue to Memorial.
4. Denver-based University of Colorado Hospital offered $74 million in upfront cash but said its total package is worth $1.79 billion. It also proposed $3 million per year to fund a CU medical school campus in Colorado Springs. The hospital is also “fast cementing” a statewide network with Poudre Valley Health System in Fort Collins, according to the report.
5. Finally, Memorial’s current management proposed the creation of a non-profit organization that would pay the city $5 million the first year along with a percentage of earnings later. The current management said it would seek collaborations and a regional network.
Related Articles on Memorial Health System:
Community Health Systems Out of the Running for Colorado’s Memorial Health
Suitor Questions Openness of Bidding for Colorado’s Memorial Health
Colorado’s Centura Healthcare is Memorial Health System’s Latest Suitor
