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DENVER, CO. -  JULY 18:  Denver Post's Electa Draper on  Thursday July 18, 2013.    (Photo By Cyrus McCrimmon/The Denver Post)
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Getting your player ready...

Children’s Hospital Colorado in June will relinquish control of its pediatric center at Memorial Hospital Central in Colorado Springs after a federal and state investigation found problems with emergency services.

In a joint statement Wednesday, the hospitals said the emergency room has stopped treating severe trauma in pediatric patients. The Colorado Springs hospital will no longer be able to treat the most complex pediatric trauma cases, estimated at fewer than 10 per month.

That leaves the city with no severe-trauma care for children. Children’s medical campus in Aurora and Denver Health are now the only hospitals in Colorado permitted to treat severe trauma in pediatric patients.

Children’s operates the Colorado Springs pediatric unit at the Memorial Hospital Central location under an agreement with Memorial parent UCHealth, which provides adult care there.

On Tuesday, Memorial gave up the state waiver that allowed Children’s to treat severe-trauma cases. On June 13, pediatric patients will become Memorial’s, under its license,
hospital officials said.

Officials for the hospitals said they are changing their business arrangement, but pediatric patients will not be affected beyond the loss of augmented trauma care.

“Children’s Hospital Colorado will continue managing (pediatric patients’) high-quality care,” the statement said. “The same specially trained nurses providing care to pediatric patients today will continue providing care after this transition. Children’s Colorado nurses and staff members will care for patients as contracted employees of Memorial Hospital.”

Children’s still operates an outpatient and urgent-care center and a therapy center in Colorado Springs.

Children’s has no intention of lessening its commitment to Colorado Springs or undoing its partnership with UCHealth, interim CEO Jena Hausmann told The Denver Post.

“We believe it to be a beautiful, long-term relationship,” she said. “And there will be no staff cuts (because of this).”

Hausmann said Children’s will no longer be billing patients, but will be reimbursed for its staff and care. It will lose revenue with this new business arrangement, she said, but “it will be a minimal revenue impact.” She couldn’t provide an estimate.

, since February the state health department and federal Centers for Medicare and Medicaid Services have been investigating care at the department in Colorado Springs.

Colorado Department of Public Health and Environment director Dr. Larry Wolk told The Post that by voluntarily submitting its “plan of correction” on Tuesday, Children’s “pre-empted” the full investigation’s conclusion.

“I think the action speaks to what is in Children’s best interest,” Wolk said. “This situation in no way is indicative of the care Children’s provides at its Aurora campus.”

Memorial has had a state waiver since 2013 to treat severe pediatric trauma cases — the most serious injuries involving brain injuries or extensive orthopedic injuries, similar to what a Level 1 facility could treat. These types of severe injuries require staffing physician specialties such neurosurgeons and orthopedic specialists.

When the investigation is completed in the coming weeks, Wolk said, details about issues at the Colorado Springs facility will be released publicly.

“We need to complete the process,” Wolk said.

Hausmann said the issues of concern to investigators were not related to quality of care but centered on technicalities related to licensure rules, such as two separate entities with two licenses in one building sharing some admissions staff.

In the written statement, the hospitals’ officials said they “remain committed to providing care locally and are discussing plans to increase pediatric trauma capabilities, including specialized pediatric facilities and physician coverage.”

Children’s employs almost 500 people in Colorado Springs, officials said.

“Memorial and Children’s Colorado are working together to make the transition seamless for patients, families and staff,” the release said.

Under a management-service agreement, The Gazette reported, Children’s subleased the former Memorial Hospital for Children from UCHealth, which leased the two-hospital Memorial Health System from the city of Colorado Springs in 2012.

Colorado Springs voters approved the deal, which included $259 million upfront and annual payments of $5.6 million, The Gazette reported.

Electa Draper: 303-954-1276, edraper@denverpost.com or twitter.com/electadraper

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