Monday, November 14, 2011

$325 million offered for Memorial by HCA-Health One

Posted By on Mon, Nov 14, 2011 at 4:19 PM

Memorial: Worth a bundle.
  • Memorial: Worth a bundle.

HCA-Health One is ready to fork over $325 million in cash for Memorial Health System, according to documents delivered to us Monday afternoon by Kevin Walker, a former developer who's working in behalf of the Nashville company.

The summary states HCA will prepay $500 million in lease payments for the 40-year term. That, coupled with $326 million of cash on hand Memorial already has, will be used to pay off the hospital's debt and the Public Employees Retirement Association obligation of $191 million, leaving $325 million for the city spend on health care as it sees fit.

That is, unless the city can persuade the Legislature to amend the Hospital Transfer Act to allow that money to be spent on something else.

HCA also estimates it will pay $10 million a year in property and sales taxes.

The HCA proposal also contains provisions to retain employees for six months until an analysis can be done to show whether to keep all 4,400 of them.

In addition, the proposal calls for a local board that will be in complete control of decisions that involve deviating from the lease agreement, says Walker and Linda Kanamine, VP of public affairs and marketing for HCA.

HCA, one of about a half-dozen entities that will be bidding on leasing the city-owned health care system, plans to make Memorial its southern Colorado "flagship," Walker says.

That status means Memorial will get an infusion of $1 billion in capital improvements during a 40-year lease.

While making and spending all that money, HCA says it expects to improve the quality of care at Memorial and "maintain commitment to charity care policies/Medicare/Medicaid/TriCare."

A public meeting is planned for Thursday at 5:30 p.m. at City Hall to explain the Memorial process. Another public meeting will be set up in December to outline all the bids.



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