The University of Colorado Hospital at the Anschutz Medical Campus and the Poudre Valley Health System are exploring joining forces to create a nonprofit health care system.
Bruce Schroffel, UCH’s president and chief executive, and Poudre Valley Health System CEO Rulon Stacey said Thursday they’ve signed a letter of intent to explore a joint operating agreement. They said they are optimistic the new nonprofit health care system will be a reality in October.
The new organization would include a workforce of nearly 10,000, including more than 1,600 physicians.
Discussions began in December. The new health care system would not be a merger or an acquisition. No money has been exchanged.
Schroffel and Stacey said health-insurance reform, the increasing complexity and cost of treating patients and a projected shortage of medical professionals were keys in pursuing an agreement.
“I am very excited about the possibility of a very different kind of health care system for the region,” said Schroffel. “It is truly the start of a new era in health care for the Rocky Mountain region.”
Stacey said the goal of the new nonprofit is to provide the best possible care for Colorado and Rocky Mountain-area patients, to excel in medical education and to advance research.
Poudre Valley and UCH would operate the new nonprofit together as a single economic entity, pooling revenues and expenses with one “bottom line.”
If the agreement is reached, UCH and Poudre Valley would retain their own boards of directors. An 11-member board would be formed for the new health care system. However, each hospital would control operations at its respective facilities.
Stacey said it will take time to coordinate.
“Any time you bring two organizations together, there are inherent challenges, from appropriate governing structure to organizing who is going to do what and who has responsibility for different areas,” he said.
Poudre Valley provides care in Colorado, Nebraska and Wyoming. It includes Poudre Valley Hospital and Medical Center of the Rockies and has more than 5,100 employees.
University of Colorado Hospital is the region’s leading academic medical center and is among the top 10 U.S. academic medical centers.
Howard Pankratz: 303-954-1939 or hpankratz@denverpost.com
A look at revenues
Net patient service revenue (the estimated net realizable amount from patients, third-party payers and others for services rendered):HealthOne: $1.7 billion (as of 1 2/31/09)
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• Centura Health: $1.6 billion (as of 1 2/31/09)
• PVCH/UCH: Projected for 2011 as a consolidated entity: $1.5 billion
• Exempla Healthcare: $974 million (as of 1 2/31/09)
• Banner Health: $587 million (as of 1 2/31/09)
Information provided by University of Colorado Hospital based on multiple sources.
