Exempla Inc., operator of Exempla Lutheran and Good Samaritan medical centers, is suing Attorney General John Suthers to block the sale of two hospitals to a Catholic health care system.
Exempla Inc. filed a suit late Friday in Denver District Court to force Suthers to set aside his Dec. 27 opinion that the transfer of the two hospitals to Kansas-based Sisters of Charity Leavenworth Health System did not violate state laws for nonprofits.
Suthers said the transfer wouldn’t materially change services.
Exempla argues in its complaint that the AG lacks jurisdiction to review the transfer under the Hospital Transfer Act.
The Sisters of Charity system is seeking to become sole sponsor of the hospitals by paying its co-sponsor, the Arvada nonprofit Community First Foundation, $311 million.
The Sisters of Charity would discontinue some services now available at the hospitals, such as abortion and sterilization.
“The proposed transaction would drastically change the fundamental character of Exempla Healthcare,” the complaint states.
The fallout from the proposed hospital sale led to a statehouse bill to give the attorney general the authority to consider whether future transactions would result in a deterioration of health care services.
HB 1203 passed the House health committee 7-6 Monday.
Sponsor Morgan Carroll, D-Aurora, warned that if the state does nothing to protect the health care market, Colorado could end up losing services in a hospital monopoly.
Staff writer Jennifer Brown contributed to this report.
