In an effort to speed a decision in a proposed $311 million sale of two Denver-area hospitals, the buyer — Sisters of Charity of Leavenworth Health System — said it will seek binding arbitration Monday.
Sisters of Charity said it will ask a Denver district judge to suspend proceedings in a Jan. 8 lawsuit filed by Exempla Inc. to block the purchase of two hospitals.
The Kansas-based Sisters of Charity agreed to pay its partner, the Arvada-based nonprofit Community First Foundation, $311 million for its 50 percent interest in Exempla Lutheran and Good Samaritan hospitals in Wheat Ridge and Lafayette.
Upon becoming the sole sponsor of the two hospitals, Sisters of Charity officials said, it also would provide $300 million in additional funding to the hospitals’ operator, Exempla Healthcare.
The Exempla board opposes the transfer because as a Catholic manager, Sisters of Charity will not permit abortion, tubal ligation and birth-control services in its hospitals.
Exempla chief executive Jeff Selberg said the sale would change the basic character of its health care system.
“If they are willing to protect the heritage of Lutheran and Good Samaritan hospitals,” said Selberg, “we welcome them back to the table.”
Exempla also sued state Attorney General John Suthers over his December opinion that said transfer of the two hospitals into sole Catholic control did not violate state laws prohibiting a material change in the use of a nonprofit’s assets.
The Exempla board began steps last week to terminate the sponsorship of the hospitals by Sisters of Charity and Community First.
The two were never intended to be vested with economic interests, Selberg said. The two organizations have filed in court to stop this action.
“We are disappointed that we have been forced to take these steps, but we feel it is important to protect Exempla’s hospitals from erosion of their assets,” Sisters of Charity CEO Bill Murray said in a statement.
“The Exempla board’s continued attempt to block the transaction is a misuse of Exempla’s resources,” Murray said.
Electa Draper: 303-954-1276 or edraper@denverpost.com
