|FOR IMMEDIATE RELEASE
||Media Contact: Chuck Reyman, Vice President of Communications
|June 15, 2011
The Colorado Health Foundation to Sell Equity Stake in HCA-HealthONE LLC
Landmark transaction to extend and increase financial stability, enabling Foundation to focus on Colorado's health for generations
DENVER, Colo., June 15, 2011 – The Colorado Health Foundation (the Foundation) announced today that its 24-member board of directors has approved and signed a non-binding Memorandum of Understanding (MOU) to sell its approximately 40 percent equity share of the HCA-HealthONE LLC joint venture to Hospital Corporation of America (HCA). Upon approval and closing of the $1.45 billion sale, the Foundation will use the sale proceeds to focus on its core mission of making Colorado the healthiest state in the nation by increasing access to quality health care and coverage, and encouraging healthy living.
HCA-HealthONE LLC began in 1995 as a joint venture with HCA and Denver's HealthONE hospitals. Since that time, the purpose and intent of the original joint venture to strengthen and grow Denver's HealthONE hospitals, while maintaining an ongoing commitment to community benefit and charity care, have been realized. During the past 16 years, the Foundation has grown beyond its original hospital ownership responsibilities, expanding to serve every county in Colorado through its investment grants and partnerships, which have resulted in more than $250 million provided to Colorado since 2006. By selling its equity stake and investing the proceeds in a diversified and more stable managed portfolio, the Foundation can continue supporting its mission throughout the state in perpetuity. The Foundation anticipates that grantees and other organizations will see few, if any, changes in their relationship with the Foundation.
"This is great news for the people of Colorado," said Anne Warhover, president and CEO of the Foundation. "By diversifying our funding, we can help ensure a strong future for the Foundation with confidence in our ongoing ability to provide millions of dollars in health-related grants to the people of Colorado for generations to come. Through this transaction, the Foundation can focus on what it does best – increase the number of Coloradans with health insurance, ensure they have access to quality, coordinated care, and encourage healthy living."
The proposed transaction also enables HCA to continue its tradition of managing, governing and investing in its existing network of acute-care hospitals serving the Rocky Mountain Region. Terms of the MOU include several key covenants that ensure HealthONE will remain one of Colorado's premier hospital networks. Specifically, the agreement calls for establishment of an independent community board of trustees for purposes of providing community perspective and advice in connection with the operation of the HealthONE system and continuation of HealthONE's commitment to indigent care and Graduate Medical Education residency programs to train the next generation of physicians.
"We conducted an exhaustive review of all options that would provide increased financial stability for the Foundation while ensuring continued delivery of high-quality patient care by HealthONE, and we determined this transaction best serves the people of Colorado," added Stephen Shogan, M.D., chairman of the board of directors for the Foundation.
The agreement is pending regulatory review and is expected to close the second half of this year. Upon closing, the Foundation will become the largest funded foundation in Colorado, with assets of more than $2 billion.
"We're excited about this next chapter in the Foundation's long history," added Warhover. "It is my honor to work with one of the most respected and storied organizations in Colorado. With this transaction, we can continue our legacy of good works on behalf of the people of Colorado for generations to come."
About the Colorado Health Foundation
The Colorado Health Foundation works to make Colorado the healthiest state in the nation by increasing the number of Coloradans with health insurance, ensuring they have access to quality, coordinated care and encouraging healthy living. The Foundation invests in the community through grants and initiatives to health-related nonprofits that focus on these goals, as well as operating medical education programs to increase the health care workforce. For more information, please visit www.ColoradoHealth.org.
HealthONE is the largest healthcare system in the metro Denver area with 8,700 employees and 3,000 affiliated physicians. The health system is a Colorado company created in 1995 as a 50/50 joint venture between non-profit the Colorado Health Foundation, Colorado's second largest charitable foundation, and various affiliates of HCA (NYSE: HCA).
HealthONE includes the following: The Medical Center of Aurora and Centennial Medical Plaza; North Suburban Medical Center; Presbyterian/St. Luke's Medical Center (P/SL) and Rocky Mountain Hospital for Children; Rose Medical Center; Sky Ridge Medical Center; Spalding Rehabilitation Hospital; Swedish Medical Center and Swedish Southwest ER; 13 ambulatory surgical centers; more than 30 occupational medicine/rehabilitation, specialty, and outpatient diagnostic imaging clinics; and AirLife Denver, which provides critical care air and ground transportation for an eight-state region.