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Exempla asks judge to toss AG's approval of hospital sales

Legislature also weighs in on deal for two facilities

By Myung Oak Kim, Rocky Mountain News (Contact)

Published January 29, 2008 at 12:30 a.m.

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Exempla Healthcare has asked a judge to toss out a state attorney general's ruling that OKs the proposed Catholic takeover of two area hospitals.

The lawsuit, filed Friday in Denver District Court, is the third court case initiated by organizations opposed to the pending sale of Exempla Lutheran Medical Center in Wheat Ridge and Exempla Good Samaritan Medical Center in Lafayette. It seeks to reverse John Suthers' ruling from last month.

State lawmakers also have introduced two bills aimed at restricting similar hospital transactions and ensuring that all proceeds from such sales be spent on medical services.

If the $311 million sale goes through, both hospitals would be completely owned by Sisters of Charity of Leavenworth Health System, a Kansas nonprofit that already controls 50 percent of the two hospitals.

Arvada nonprofit Community First Foundation wants to sell its interest to Sisters of Charity.

Catholic hospitals must follow ethical and religious directives that prohibit doctors from performing birth control procedures such as abortions, vasectomies and tubal ligations unless deemed medically necessary.

Medical staff members at Catholic hospitals also are restricted from removing feeding tubes from patients in a vegetative state.

The board of Exempla, which manages both hospitals, doctors and community organizations oppose the deal because of restrictions in medical care.

Exempla filed suit Jan. 8 in Denver District Court seeking to block the sale. That case is pending.

Last month, an activist group, doctor and patient filed suit in Boulder District Court. Sisters of Charity and Community First filed motions to dismiss that case, arguing that the lawsuit has no merit. The case is pending.

Community First and Sisters of Charity contend that the prohibited services would be provided at nearby facilities and that the sale would result in significant improvements in medical care.

The transaction was scheduled to be completed at the end of January but has been pushed back because of the court cases.

Spokespersons for Community First and Sisters of Charity said Monday that they don't have a date for the sale's completion.

Suthers reviewed the transaction, as required by a state law known as the Hospital Transfer Act, and announced last month that he found no grounds to block the sale. He said his decision was based largely on the fact that the religious-based reductions in services constitute less than 1 percent of total admissions at the hospitals.

The latest suit by Exempla argues, among other things, that Suthers lacked jurisdiction to review the transaction under the Hospital Transfer Act. The lawsuit also said Suthers didn't adequately investigate the effect that the restricted medical care would have on the community.

Nate Strauch, spokesman for Suthers, said his office will "vigorously defend" their legal findings.

In the legislature, HB 1173 would, among other things, require hospitals to seek court approval for charitable assets from hospital sales to be spent on services other than medical care. The measure has been approved by the House and now moves to the Senate.

The bill, if it becomes law soon, could affect how proceeds are spent from the Lutheran- Good Samaritan sale, said Ed Kahn, special counsel for the Colorado Center on Law & Policy.

kimm@RockyMountainNews.com or 303-954-2361

Comments

  • January 29, 2008

    8:49 a.m.

    Suggest removal

    jacka writes:

    Government in the peoples business again!

    Direction is based on majority party goals. They can't stand losing abortion access so let us cripple someone in the transation to influence the transation.

  • January 29, 2008

    8:49 a.m.

    Suggest removal

    jacka writes:

    Government in the peoples business again!

    Direction is based on majority party goals. They can't stand losing abortion access so let us cripple someone in the transation to influence the transation.

  • January 29, 2008

    8:49 a.m.

    Suggest removal

    jacka writes:

    Government in the peoples business again!

    Direction is based on majority party goals. They can't stand losing abortion access so let us cripple someone in the transation to influence the transation.