Posted on October 18, 2011

Colorado Health Foundation Receives $1.45 Billion From Stake in HCA Healthcare System

The Colorado Health Foundation has announced that it has received a $1.45 billion payment from HCA, Inc. for its 40 percent equity stake in the HCA HealthONE system.

Approved by Colorado attorney general John Suthers, the divesture enables the foundation to transfer its assets to a diversified investment portfolio and continue its funding levels for the foreseeable future. In 2010, the foundation awarded more than $90 million in grants to nonprofits working to boost access to health care and coverage while promoting healthy living for residents of the state.

The agreement approved by Suthers requires HealthONE to continue its support of charity care for fifteen years and accept Medicare and Medicaid coverage for ten years. Additional provisions include no hospital closures by HealthONE for a minimum of five years. The agreement also establishes a HealthONE board of trustees, which will oversee the transaction's covenants for fifteen years and provide counsel to HealthONE regarding its healthcare quality, patient safety, compliance, performance improvement, risk management, and community-benefit functions.

According to Stephen Shogan, chairman of the foundation's board of directors, 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," Shogan said, "the foundation has focused its attention on healthy living and expanding coverage and access to quality, integrated care for Colorado's underserved. This sale ensures that both organizations can concentrate on their respective missions."