UCH put its label on Memorial in 2012.
We're sure there's a rational explanation — at least we hope there is — for why the Memorial Health System
bank balance was cut in half in one year's time.
According to a memo to City Council
from the city's chief financial officer Kara Skinner
, the enterprise's balance went from $28.1 million on Jan. 31, 2013, to $14.2 million by Dec. 31, 2013. And that took into account the annual lease payment from the University of Colorado Health of $5.6 million.
During the year, $19.8 million went out the door.
But UCH came out the winner, having received
$12.4 million from the city under the lease's terms, twice as much as it paid the city last year.
Voters approved the lease, spearheaded by City Attorney Chris Melcher
, who leaves the city next week, overwhelmingly in August 2012, and it became effective on Oct. 1 that year.
Among expenses during 2013:
• Legal fees (in house) $72,592
• Legal fees (outside) $2,226,037
• Severance and RBA payments
• Bond litigation
• Payment to UCH for "post-closing adjustment" $5 million
• Payment to UCH for "net working capital reconciliation" $7,384,628
Skinner is due to explain the report to City Council on Monday.
This annual report comes days after former CEO Mike Scialdone
, who saw the city-owned hospital through a traumatic time from May 2012 through Jan. 17, unceremoniously "resigned" along with CFO Tracy Narvet
to make way for UCH-connected people
If interested, we wrote about the lease
back in early August 2012.