Honorable Mayor Lionel Rivera

Colorado Springs City Council

107 N. Nevada Avenue

Colorado Springs, CO 80903

Dear Mayor Rivera and Members of City Council,

The Citizen’s Commission on Ownership & Governance of Memorial Health System is privileged and honored to have been chartered to evaluate and recommend the best possible future ownership model for Memorial Health System.

After thousands of hours of research and contemplation combined with insight from local, regional and national experts, we unanimously concluded that Memorial will best serve this community for generations to come by becoming an independent not-for-profit 501(c)(3) entity.

Our work, as a Commission, came to a natural close with our presentation to you Nov. 22, 2010.  We respectfully recommend the following next steps: 

1. That the Commission remains intact and available for questions until any ballot language is finalized, though we will not meet formally.
2. That once ballot language has been finalized, but not later than January 31, 2011, City Council de-commissions the Memorial Citizen’s Commission so that each of us has the option to help the broader community understand the implications and importance of such a change.
3. That the Mayor and City Council quickly establish a small working group (see para. 4) to perform the following:
   1. By January 5, 2011, develop ballot language for the submission of the new status of Memorial Health System for approval by the City’s citizens.
   2. By January 5, 2011, develop a memorandum to be shared with the public that describes the tasks to be completed prior to the ballot and change in MHS status.

By the time of the April municipal general election, develop detailed financial and legal language to address and describe the conditions relating to the future status of MHS and the steps needed to achieve that status, including: 

                                                  i.      The financial amount to be provided by MHS to create and fund the public foundation suggested in our recommendation;

                                                 ii.      The draft non-profit 501(c)(3) organization documents;

                                                iii.      The bylaws for the new MHS nonprofit organization;

                                               iv.      The disposition of MHS related property and capital, including any leasing arrangements; and

                                                 v.      Other details necessary for completing the MHS transition from city-ownership to nonprofit independence, including all details necessary to defease existing bonds, resolve all outstanding issues with PERA to disaffiliate and establish a new retirement system for employees.

1. That this small working group be composed of City Attorney Patricia K. Kelly, consultant Larry Singer, Dr. Larry McEvoy and appropriate members of MHS senior leadership, 1 or 2 members of the MHS Board of Trustees, and 1 or 2 members of City Council.  

Finally, on behalf of the Commission, we appreciate the opportunity to have served City Council and this community.

Sincerely,

Bob Lally

Chair, Citizens’ Commission on Ownership & Governance of Memorial Health System

The Citizens’ Commission on Ownership and Governance of Memorial Health System has reached a unanimous recommendation on the model that City Council and our fellow citizens should adopt to assure a strong health care system available to provide excellent quality care to all.  We are absolutely convinced that given the implications of national health care reform and the forces impacting heath care and MHS in general, continuation of the status quo is not a viable option.  We also strongly believe that the disadvantages associated with the hospital authority, not-for-profit affiliation/lease and for-profit sale options are too strong to be overcome and do not represent appropriate options for MHS.  Independent, expert study of MHS’ current and future financial position convinces us that MHS has the ability to thrive as a newly formed, independent, not-for-profit tax-exempt 501(c)(3) organization.

The Citizens’ Commission made its recommendation to Colorado Springs City Council Nov. 22, 2010. The FULL REPORT is available to the public on the Commission’s Web site www.MemorialCitizensCommission.com. Additionally, copies of the report will be available at several public locations throughout the community. Locations include the Downtown and East public libraries, the City Administration Building, and the libraries of Colorado College, the University of Colorado at Colorado Springs, and Pikes Peak Community College’s south campus library.

The document begins with a summary of the process the Commission implemented to reach its conclusion and is followed by its recommendation of the above mentioned preferred model and rationale for not recommending the other models.  The report also includes protections the Commission recommends be put in place along with the ownership/governance change.

This Commission was entrusted with a tremendous task. It has worked tirelessly to ensure access to this crucial community asset will continue and grow beyond our currently mandated boundaries. We have recommended an ownership and governance model that maintains a vital mission of providing the highest quality care, a quality-of-life promise to all, no matter their ability to pay. The nine citizen volunteer Commissioners, who each call Colorado Springs their home, has made their recommendation — a recommendation we believe to be the best option for the future of healthcare in the Pikes Peak region.

We thank the City of Colorado Springs City Council and citizens for the opportunity to serve on the Commission and for the privilege in helping our community chart an exciting future for our health care system.

On behalf of the Memorial Citizens’ Commission:

Robert Lally, Chair

Martha Barton, Co Vice-Chair

Jay Patel, Co Vice-Chair

Myrna Candreia                                             

Paul Dougherty                                  

William Hodson, PhD.

Peggy James                                                  

Dave Munger                         

William Murray

To view the Commission’s PowerPoint presentation to council, click HERE.

–Bob Lally, Citizens’ Commission Chair