UCHealth has paid its largest revenue-sharing check — $1.38 million — to a Colorado Springs foundation after another strong financial performance by Memorial Hospital.
The hospital system makes the annual payments as part of a revenue-sharing agreement with the city of Colorado Springs, which began leasing Memorial Hospital to UCHealth in 2012. The total is more than double the $675,475 paid last year and brings the total revenue sharing paid by UCHealth to $5.83 million, UCHealth said this week in a news release.
The payments are made annually when the hospital’s earnings before interest, taxes, depreciation and amortization exceed an operating margin of 8%. The payments, equaling 5% of amounts above that baseline — and go to the Colorado Springs Health Foundation. The charity has made $16 million in grants since 2016 to organizations in El Paso and Teller counties that address health care issues and support programs that encourage healthy living.
“This revenue-sharing payment allows the Colorado Springs Health Foundation to invest even more in the health and wellness of Pikes Peak region residents,” foundation Executive Director Cari Davis said in the UCHealth release. “It is a wonderful way to ensure UCHealth Memorial’s successes are shared with the community it serves.”
Last year’s payment was substantially less than previous years because Memorial spent heavily in 2018 to upgrade its emergency operations to a Level I trauma center and to become a Comprehensive Stroke Center. Memorial said this year it has increased outpatient visits 24%, boosted urgent care visits 8%, added 44 doctors to its UCHealth Medical Group and added cancer surgical services in several new areas.
Memorial also completed an addition this year to its North campus, renovated its Central campus to convert pediatric beds and other areas for use by adults after Children’s Hospital opened. The hospital started construction in August on a medical building on its Grandview campus and plans next year to build a new outpatient complex on Powers Boulevard. UCHealth said it plans to spend $100 million during the next five years to expand behavioral health services statewide.
“UCHealth’s ongoing investments in the Pikes Peak region mean residents have more access to the highest-quality care where they want it — close to home,” UCHealth Memorial CEO Joe Yuhas said in the release. “In this goal, we are working to create more outpatient locations and implementing virtual health and other innovative care delivery models to make health care more affordable.”