The proposed sale of two Colorado hospitals to a Catholic health organization has been rejected by an arbitrator.
The binding decision forbids the Kansas-based Sisters of Charity of Leavenworth Health System from purchasing Exempla Lutheran Hospital in Wheat Ridge and Exempla Good Samaritan Medical Center in Lafayette.
The proposed sale had been controversial because the Catholic system’s control of the hospitals would have stopped the offering of abortions, sterilization and other birth-control services.
Lutheran and Good Samaritan are co-owned by Sisters of Charity of Leavenworth and the Arvada-based Community First Foundation.
In 2007, the foundation proposed selling its stake in the nonsectarian hospitals to the Sisters of Charity for $311 million.
Nonprofit Exempla Healthcare, which operates the hospitals, filed suit to block the sale, citing the reproductive-services ban and the possibility that proceeds from the sale would be funneled away from hospital uses.
A Denver District Court judge last year sent the lawsuit to arbitration. The arbitrator’s ruling, following three weeks of closed-door hearings, is not subject to judicial appeal.
“While we disagreed on significant issues, I believe the intention of all parties was, and still is, to meet the needs of our patients, hospitals and clinics,” said Jeff Selberg, chief executive officer of Exempla Healthcare. “We look forward to identifying next steps with our sponsors.”
Steve Raabe: 303-954-1948 or sraabe@denverpost.com
