Memorial Hospital North is one revenue center the city leased to UCHealth three years ago.
For the first time since the city leased Memorial Hospital
to University of Colorado Health
in October 2012, the city will share in the revenues produced by the hospital.
In a news release, UCHealth announced it will pay the city $1.345 million.
"more than $1.3 million" but didn't give a specific number.
UCHealth also pays a set lease fee of about $5.6 million annually, and paid $259 million up front
, $190 million of which went to settle a lawsuit with Public Employees Retirement Association, which needed the money to assure Memorial's workers' pensions already earned are paid over time.
Here's the news release:
Colorado Springs (November 18, 2015) — After a successful year with significant patient care and financial improvements at Memorial Hospital, UCHealth will pay the City of Colorado Springs more than $1.3 million. Revenue-sharing payments like this will be made each year the hospital experiences earnings in excess of a baseline percentage outlined in UCHealth’s lease of Memorial Hospital from the city.
UCHealth has also invested more than $90 million in infrastructure and service improvements during the past three years. These investments include remodeled, private patient rooms, a new radiation oncology center under construction at Memorial Hospital North, six new primary care locations and the addition of new, advanced imaging equipment. Memorial Hospital North has also opened a new cardiac catheterization lab while adding services including trauma surgery and oncology chemotherapy infusion.
“Memorial has changed significantly since our lease began in 2012,” said George Hayes, president and CEO of Memorial Hospital. “We are proud of the advancements that we’ve made in patient care. We’ve seen significant improvements in the quality of our care, and our patient satisfaction scores reflect these enhancements. Memorial is also seeing an increase in patient volumes and additional revenue, making this payment possible.”
Memorial Hospital’s partnership with Children’s Hospital Colorado provides the highest-level neonatal intensive care unit in southern Colorado, the only pediatric intensive care unit, and many expert specialists who provide the very best care for pediatric patients. The hospital also added a pediatric neurosurgeon to its team in September, the only such specialist in the region. Children’s Colorado will break ground soon on their new children’s hospital on the Memorial North campus.
In addition, physicians, nurses and staff members at Memorial have taken on initiatives to increase patient safety. Since 2012, this focus has led to:
• Fewer patients experiencing a fall
• Excellent patient outcomes with fewer patients being readmitted to the hospital
• Fewer patients experiencing infections and pressure ulcers
“Most importantly, more patients are alive and healthy today because of these improvements in quality and safety,” said Memorial Hospital Chief Medical Officer Patrick O. Faricy. “This is a tribute to the entire team of dedicated and highly skilled nurses, physicians and staff members at Memorial Hospital Central, Memorial Hospital North, and all of our clinic and urgent care locations.”
Multiple, national accreditation bodies have recognized Memorial’s increases in quality and safety, naming the hospitals as a Chest Pain Center, Primary Stroke Center and Level III Trauma Center at MHN. Further, U.S. News and Word Report now ranks Memorial as #4 in its list of Colorado’s Best Hospitals.
“What’s exciting is that this is only the beginning,” said Hayes. “We will continue to advance the innovative and expert care we provide patients in southern Colorado, and residents of El Paso County can expect us to continue adding new services, locations and specialists.”
Higher numbers of patient visits, surgeries and admissions in fiscal year 2015 helped lead Memorial to the $1.345 million revenue sharing payment for the City of Colorado Springs.
About Memorial Hospital:
Memorial Hospital, part of UCHealth, has been part of the Colorado Springs community since 1904. Memorial has two hospitals, Memorial Hospital Central and Memorial Hospital North, and more than a dozen facilities throughout the Pikes Peak Region. UCHealth is a Front Range health system that delivers the highest quality patient care with the highest quality patient experience. UCHealth combines Memorial Hospital, Poudre Valley Hospital, Medical Center of the Rockies, Colorado Health Medical Group, and University of Colorado Hospital into an organization dedicated to health and providing unmatched patient care in the Rocky Mountain West. Separately, these institutions can continue providing superior care to patients and service to the communities they serve. Together, they push the boundaries of medicine, attracting more research funding, hosting more clinical trials and improving health through innovation.