DENVER—The University of Colorado Hospital is combining with Poudre Valley Health System’s two hospitals in Fort Collins and Loveland to form University of Colorado Health.
The venture was announced Tuesday. The new combined system says it will have nearly 10,000 employees and annual net revenue of $1.5 billion.
The three hospitals will retain their names: University of Colorado Hospital in the Denver suburb of Aurora, Poudre Valley Hospital in Fort Collins and Medical Center of the Rockies in Loveland.
Bruce Schroffel, president and chief executive of University of Colorado Hospital, said the new system will combine the best of academic and community medicine.
The agreement has been approved by both systems and their partners. It will have a governing board of 11 directors and an executive team.
Schroffel will be president and chairman of the board. Rulon Stacey, president and CEO of Poudre Valley Health System, will be the new system’s CEO.
Schroffel said the new system could expand. University of Colorado Hospital and Poudre Valley Health System are negotiating with Colorado Springs city officials to lease and operate the city’s Memorial Hospital. The arrangement would require approval by Colorado Springs voters.
Brad Spielman, a vice president and senior analyst with Moody’s Investors Service, told The Denver Post ( ) hospital consolidations seem to be speeding up, with economies of scale one factor.
Mark Pascaris, another vice president and analyst with Moody’s, said one factor propelling consolidations is concern among hospital administrators about a lack of revenue growth.
Some of the pressure comes from expected cuts in Medicare and Medicaid, which translate into less revenue for hospitals, Pascaris said.
