|FOR IMMEDIATE RELEASE
||Media Contact: Suzanne Beranek
|Oct. 14, 2011
The Colorado Health Foundation completes sale of HCA-HealthONE equity stake
Historic transaction enables the Foundation to continue its current funding levels for generations to come
DENVER — The Colorado Health Foundation today received a $1.45 billion payment from HCA Inc. for its 40 percent equity stake in the Denver-area’s HCA-HealthONE health care system.
Approved by Colorado Attorney General John Suthers, the divesture allows the Foundation to transfer its assets to a diversified investment portfolio that will strengthen its long-term vision to make Colorado the healthiest state in the nation. The Foundation, which provided more than $90 million in funding to its grant partners in 2010, works with health-related nonprofits to increase access to health care and health coverage while promoting healthy living for Coloradans statewide. The Foundation also administers medical education programs to bolster Colorado’s health care workforce.
“This is a historic milestone for the Foundation and -- most importantly -- for the people of Colorado,” said Anne Warhover, president and CEO of the Foundation. “The culmination of this transaction will provide greater diversification, enabling us to continue to support our partners at current funding levels for generations to come.”
After many months of careful, deliberate consideration, the Foundation’s Board of Directors decided earlier this year that selling the Foundation’s stake in HealthONE would provide the Foundation with enhanced financial stability to best serve the people of Colorado. HealthONE is the largest health care system in the Denver-metro area with seven hospitals, 8,700 employees and 3,000 affiliated physicians.
Stephen Shogan, MD, chairman of the Foundation’s Board of Directors, noted that even though the partnership served both organizations well, the missions of HealthONE and the Foundation diverged over time. “While HealthONE has provided quality acute patient care services, the Foundation has focused its attention on healthy living and expanding coverage and access to quality, integrated care for Colorado’s underserved,” Shogan said. “This sale ensures that both organizations can concentrate on their respective missions.” The Foundation will continue to partner with HealthONE in managing five Denver-area physician-training residency programs.
The agreement approved by Suthers requires HealthONE to continue its support of charity care for 15 years, and accept Medicare and Medicaid coverage for 10 years. Additional provisions include no hospital closures from HealthONE for a minimum of five years. The agreement also establishes a HealthONE Board of Trustees, which will oversee the transaction’s covenants for 15 years and provide counsel to HealthONE regarding quality, patient safety, compliance, performance improvement, risk management and community-benefit functions. Read more about Suthers’ decision in this news release.
The completion of the transaction will not bring significant changes to the Foundation’s investments in the people of Colorado, Warhover said. “Our vision remains to make Colorado the healthiest state in the nation. The long-term funding this transaction provides only strengthens our means to achieve that vision.”
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.