The Future of Health Care for the Pikes Peak Region

UCH & PVHS Deal is Official: Who’s CEO?

Brian Newsome — Tue, 31 Jan 2012 16:45:35 +0000

The long-negotiated partnership between University of Colorado Hospital and Poudre Valley Health System appears to be complete, and PVHS CEO Rulon Stacey will lead the new system as its CEO. Read more about Stacey here.

Called University of Colorado Health, the new system began announcing its new logo and website via social media on Tuesday.

The University of Colorado Health may ultimately operate Memorial, if negotiations with the city of Colorado Springs are successful and voters ultimately approve the deal.

University of Colorado Hospital and Poudre Valley submitted a joint bid to operate Memorial through a Request for Proposals process late last year. Even though University of Colorado Health was not yet official at that time, the two organizations stated in the proposal that their intent was for the new system to eventually operate Memorial.

The organizations committed to a new branch medical school campus, financial contributions to the city, and substantial investments in Memorial’s future. The plan was unanimously supported by the City Council and has been called “amazing” by Mayor Steve Bach.

Bruce Schroffel, CEO of University of Colorado Hospital, will be president and chairman of the board of the new organization. You can find his bio here.

In addition to Stacey and Schroffel, the 11-member board includes a number of established business and community leaders with expertise in a variety of fields. Among them is Richard Monfort, owner of the Colorado Rockies. You can read bios on all of the board members here.

To “like” the new organization’s Facebook page, click here.

You can check out the new website at http://universityofcoloradohealth.org.

Mayor Weighs in on Memorial

Brian Newsome — Sat, 28 Jan 2012 00:07:09 +0000

In a press release issued earlier this week, Mayor Steve Bach outlined what he considers to be most important in the city’s negotiations with University of Colorado Hospital and Poudre Valley Health System over the future of Memorial. Here’s what his communications staff put out:

Mayor Bach weighs in on Memorial Health System negotiations

Colorado Springs Mayor Steve Bach has sent Colorado Springs City Council a letter sharing his thoughts on the future potential operating lease of Memorial Health Systems (MHS). Last August, Mayor Bach suggested to City Council that they conduct an RFP (Request for Proposal) process in order to explore all options for consideration. The Memorial Health Systems Task Force was formed and through a thorough RFP process, a wide variety of bids were submitted and examined. The Council, having accepted and approved the recommendation of the Memorial Health Systems Task Force, now enters into exclusive negotiations with the University of Colorado Health System, on such a lease.

Mayor Bach is now asking City Council to consider the following as the negotiations proceed:

· Solicitation and consideration of the Mayor’s advice in the negotiations, and incorporation of identified key terms and conditions in the final agreement.

· Use of qualified, outside legal counsel to assist Chris Melcher, City Attorney and the City’s negotiator on the Lease, in the negotiations. MHS should advance all City negotiation costs and be reimbursed by the Lessee.

· A time limit for negotiations of 6 months or less, and a submission of the final lease to the voters in a timely manner thereafter. MHS should advance any City pre-election public information expenses and election costs and be reimbursed by the Lessee.

· A concrete solution on all PERA issues, including any City obligations, with a specific monetary guarantee from the Lessee to address and resolve any City liabilities.

· A Council affirmation in advance of Lease execution, and a commitment in the Lease, that all financial payments from Lessee, including upfront payments, annual lease payments, and surplus revenue sharing payments, are all transferred directly into a segregated account at the City or an escrow account under the City’s ownership and control, and not into the General Fund.

· Memorial management and board members should not participate in the actual negotiations, but should provide timely information and suggestions to the City Attorney when requested.

· The ballot initiative should include language establishing a Colorado Springs Healthcare Foundation with a stated mission, governance structure, and policy guidelines to be determined by the Mayor and Council jointly.

· Enhance local control, input, and management of MHS during the Lease to the maximum extent possible.

· A commitment on the disposition and use of the monies currently held by MHS in their cash and operating accounts.

· A commitment to develop a Level 1 Trauma Center at MHS.

· A commitment to maintain Tricare, Medicare and indigent care.

· A commitment that the Lessee will pursue a Branch Campus Medical School at UCCS, with a written timeline, stated deadlines for progress, and a firm guarantee for at least $3 million per year towards such effort.

· A commitment to continue the Sexual Assault Nurse Evaluators (SANE) program.

· A financial guarantee, and proof of sufficient financial resources, commensurate with the financial commitments of the Lessee over the full term of the Lease.

· Stated and measurable performance outcomes that ensure the community is receiving the appropriate level of care and performance from MHS, with clear reporting obligations, performance guarantees, and penalty provisions as appropriate.

· Clear and well structured termination provisions in the event the Lessee is unable to satisfy the obligations of the Lease, even after notice and a cure period.

· Clear and firm financial guarantees from Lessee on the additional funds that would be provided to the City if (1) the PERA issues are resolved for less than the stated amount necessary in the RFP process, and (2) an appropriate share of future MHS surplus revenues or profits based on improved operations.

Mayor: UCH Deal Could Be “Amazing.”

Brian Newsome — Wed, 18 Jan 2012 23:06:50 +0000

Colorado Springs Mayor Steve Bach said Wednesday that the proposal to lease Memorial to University of Colorado Health could be “amazing” as he thanked members of City Council for their work on the hospital issue. He offered special praise to Jan Martin, City Council president pro tem, who has worked on the Memorial ownership and governance issue for more than two years and led the RFP process.

The mayor’s remarks Wednesday kicked off what will become monthly meetings between the mayor and City Council to discuss key issues facing the city. Although Memorial was only briefly discussed during the hour and a half meeting, this appeared to be the first public meeting in which the mayor voiced his support for the recommended proposal. The mayor does not have operational oversight over Memorial under the city charter, but he would likely be called upon to sign the lease with UCH and support it politically.

City Councilman Merv Bennett used the opportunity to clarify for the public that he and City Councilwoman Brandy Williams are liaisons to the negotiating team, but they are not part of the negotiating team that will work with UCH on details of the lease agreement. Bennett said his role and Brandy’s will be to “ensure communications are flowing” among the negotiating team, City Council and the mayor. The negotiating team, led by City Attorney Chris Melcher, will be composed primarily of lawyers. Those negotiations will be confidential.

The UCH proposal (read more about it here) won unanimous support from the task force that handled the RFP, as well as from City Council itself. It’s also garnered support from key business and community leaders, as well as many staff members and physicians.

Exactly when negotiations might wrap up and a measure might go to the ballot is unknown. Also in question is whether a ballot measure would face opposition from losing bidders. HCA/HealthONE publicly voiced its disappointment in the decision and left open the possibility that it might pursue additional action. In a Dec. 19 statement, HCA/HealthONE’s President and CEO Jeff Dorsey said: “We will continue to have an interest in Memorial’s future. The City Council and Colorado Springs voters will have the final say.”

Live Blog: MHS Board Meets with City Council

Brian Newsome — Fri, 13 Jan 2012 17:18:05 +0000

Today at 11:30 a.m., the Memorial Health System Board of Trustees meets with City Council to discuss, among other things, the expected transition to University of Colorado Hospital and Poudre Valley Health System. There are not many specifics on the agenda, but we’ll be live-blogging the event. To view the blog or replay it later,

Click Here

Unanimous Council Votes for University

Brian Newsome — Wed, 11 Jan 2012 19:07:49 +0000

Doctors perform surgery at the University of Colorado Hospital

A unanimous City Council voted Tuesday to enter into exclusive negotiations with the University of Colorado Hospital and Poudre Valley Health System to operate Memorial. The decision is arguably the most significant milestone yet in a 2-year process to determine Memorial’s future.

The plan has so far garnered widespread political support and provides a level of clarity for a health system that has suffered under uncertainty and city ownership. Questions and potential hurdles remain in the months ahead, but overall there appears to be a sense of optimism in the community about Memorial’s future.

Indeed, the University of Colorado Hospital, Poudre Valley Health System, and Children’s Hospital Colorado are all nationally recognized, nonprofit institutions with similar values as ours.

So, in light of this major decision, let’s step back and take stock, starting with the proposal itself.

The proposal

The University of Colorado Hospital submitted the proposal to the city, but the proposal itself calls for Memorial to be part of a not-yet-formed entity known as the University of Colorado Health System. This system would be jointly governed by UCH, Poudre Valley, and the University of Colorado, which is not directly affiliated with the hospital.

Memorial’s pediatric care would go to Children’s Hospital, which would sublease those operations in a separate agreement with University, not the city.

Memorial would maintain its own corporate identity and have a local board, but major fiduciary and strategic decisions would be made at the system level.

The proposal calls for growing Memorial’s marketshare and adding jobs in the coming years, and it includes a new medical school in Colorado Springs. The city would also receive millions up front and in annual payments.

The negotiations

In the next few months, negotiating teams from the city and University will work through the specifics of a lease transaction. These give-and-take discussions will mostly be confidential, and they will cover a variety of topics such as employee retention, quality of care, PERA, and financial contributions to the city.

When the city asked hospitals to submit bids, it included a draft lease for them to respond to. University, in its proposal, agreed to much of what was in that lease, which may speed the process up. On the other hand, any negotiation process is at risk of sticking points.

The city’s negotiating team is expected to include City Attorney Chris Melcher, City Councilors Brandy Williams and Merv Bennett, and outside legal counsel that specializes in these kinds of transactions.

The vote

Should an agreement be reached, the City Council has pledged to let Colorado Springs voters have the ultimate say. When that is, however, remains in question. Both University officials and some members of City Council have indicated their desire to get this done as soon as possible, but the only regularly scheduled election is in November. A sooner vote would depend on getting the lease done and the deadlines and expense for holding a special election.

It is too early to tell whether a ballot measure might face formal opposition. Other hospitals participating in the bidding process are free to oppose or campaign against the winner. When officials for HCA/HealthONE, a for-profit system, were asked if they’d take action against the winner, they said the decision had not been made.

The Questions

The possibilities of this new system are exciting, combining the best of community-based care and academic medicine in a model that stretches from New Mexico to Wyoming. Yet with any major change, there are understandably many questions and concerns. Will programs stay or go? Will people lose jobs or be given new opportunities? Who will decide what? Many of these answers won’t come overnight, or even on election day.

We will try to answer these questions when we can.

In the meantime, two things are not in question. One, Memorial can no longer survive as a city enterprise, and staying the same is the worst thing that could happen. Two, every single health system participating in this process (Memorial, University, Poudre Valley and Children’s) provides highest quality health care and does amazing things.

Live Blog: City Council Expected to Vote

Brian Newsome — Tue, 10 Jan 2012 16:16:01 +0000

The Colorado Springs City Council is expected to make a decision today regarding leasing Memorial to the University of Colorado Hospital. To view the live blog,

Click Here

There are a number of items on the agenda ahead of Memorial, so an exact time is hard to nail down.

Specifically, the City Council is expected to vote on whether or not to accept the recommendation of task force to pursue negotiations with the University of Colorado Hospital, and to assign a negotiating team to work with them in hammering out a lease.

If approved, this lease negotiation is expected to take several months. Once a lease is agreed upon, City Council would then need to take action to put the issue before Colorado Springs voters. Exactly when an election might occur is unknown, but University officials have urged the city to move as quickly as possible.

LIVE BLOG: City Council Hears From Task Force

Brian Newsome — Fri, 06 Jan 2012 23:57:40 +0000

On Monday, a task force will present its recommendation to lease Memorial Health System to the University of Colorado Hospital to City Council. This is an informal Council meeting, so the Council will not vote on the recommendation. A vote could either come at its formal meeting the next day, or later this month.

The meeting begins at 1 p.m. at City Hall’s Council Chambers (corner of Nevada and Kiowa). Memorial Board Chair Jim Moore will give Memorial’s monthly update to Council, and then members of the task force will make their recommendation. To watch the live blog:

Click Here

MHS Breaks Ground for Colorado

Brian Newsome — Tue, 03 Jan 2012 20:25:18 +0000

Dr. Chris Wehr, a cardiothoracic surgeon at Memorial, deftly places the instrument on a part of the beating heart. “Burning,” he calls out. The man at the machine announces when it has been 30 seconds. They test to make sure the burn worked, then repeat this process down the side of the heart.

Just minutes earlier, another physician, Dr. Brad Mikaelian, a cardiac electrophysiologist with Pikes Peak Cardiology, had performed a similar burning procedure inside the heart, via a catheter.

The first-of-its-kind surgery is a success, and the patient is eventually wheeled back to recovery.

Having a regular heart beat is something most of us probably take for granted, but some 3 million Americans suffer from irregular heart rhythms. While many folks live with this condition relatively worry-free, others are virtually debilitated by it. That was the case for 52-year-old Chris Hempel, the patient.

Ablations, in which heart tissue is burned to help restore a normal heart rhythm, are not uncommon. Most are done internally, by doctors such as Mikaelian. Some are done externally by surgeons such as Wehr. Yet both approaches, when done by themselves, are limited in what they can do. Patients may be subject to multiple surgeries, and even then the problem may ultimately remain.

This tag-team approach, however, helps ensure nothing is missed and that the condition can be fully treated in one shot. Through the exchange of information, each doctor can better do his own part.

“Using that information together, we can get better results than either of us could do alone,” Dr. Mikaelian told reporters before the surgery last week.

A great win for Memorial’s mission: to provide the highest quality health care.

Toy Donations = Merry Christmas for Patients

Brian Newsome — Fri, 23 Dec 2011 21:55:46 +0000

From left to right: Sydney Wagner, Halle Hunziker and Lydia Glatt

For the parent of a critically ill or injured child, leaving the bedside to go Christmas shopping isn’t exactly an option. That’s why Memorial Hospital for Children brings the shopping to them.

Memorial has created a store – quite literally – on its pediatric floor. Parents can pick out toys for their children, free of charge. The store is loaded with everything from stocking stuffers and baby items to bicycles and video-game consoles.

The store is made possible by the generosity of donors. Just weeks ago, Memorial was experiencing a shortage. Thanks to the media, which helped put the word out, donations have been pouring in once again.

One such donation arrived Friday. Three girls – Halle Hunziker, Sydney Wagner and Lydia Glatt – brought bags of toys purchased with proceeds from their lemonade stand.

An Early Christmas Present for Alamosa Mom

Brian Newsome — Fri, 23 Dec 2011 21:36:32 +0000

Maria Rangel received an early Christmas present on Friday when her infant son Jacob was cleared to go home after an extended stay in Memorial’s NICU.

Jacob was supposed to be born mid-January, but he arrived Dec. 5 at just 4 pounds, 2 ounces. After weeks in the hospital, he was gearing up Friday for the trip home to Alamosa to join his three brothers.

You can likely find the full story and see Maria and Jacob on KOAA News Channel 5′s evening news.