UCHealth receives approval to acquire Estes Park Health

The Attorney General of Colorado has given approval to UCHealth to acquire Estes Park Health, saying the proposed acquisition will not reduce healthcare access in the community. 

Attorney General Phil Weiser issued the opinion this week, adding that the deal "will not result in a material change to Estes Park Health hospital's public purpose."

UCHealth and Estes Park signed a letter of intent late last year. At that time, Estes Park Health had requested to join the health system, saying the deal would strengthen the healthcare services currently offered in the Estes Valley, as well as benefit EPH patients and employees.

UCHealth said it would invest more than $30 million into the hospital and the Estes Park community in the coming years, helping recruit new staff members and stabilizing Estes Park's finances. 

In the letter of intent, UCHealth also committed to evaluating opportunities to expand access to virtual health programs and behavioral health services.

EPH said when the deal was first announced that it had been dealing with challenges to maintain its services, an issue common to hospitals across the country, including "dramatically increasing expenses, rising uncompensated care and minimal increases in reimbursements from Medicare and Medicaid."

The hospital had been forced to transfer or reduce obstetrics, home health and hospice services. By joining UCHealth, EPH will be able to strengthen and sustain the health services it currently offers, it said.

The Colorado Department of Law reviewed the transaction details, limiting its scope to determining if the deal would materially change the hospital's mission and purpose, and whether its assets would remain in Colorado, under the Attorney General's jurisdiction. 

Under the Colorado Hospital Transfer Act, if both of those conditions are met, the deal must move forward.

Since it opened in 1975, Estes Park Health has been funded through property taxes collected by a special district governed by a locally elected five-member district board. According to the terms of the transaction, the district will continue to collect that tax from property owners and transfer the tax revenue to a new nonprofit entity called UCHealth Estes Park – a subsidiary of UCHealth – to support the hospital's operations.

UCHealth Estes Park will have authority over the management and operations of Estes Park Health's assets, including the critical access hospital, a family medical clinic and an urgent care center.

UCHealth's commitments under the transaction include assuming $10 million in long-term debt held by Estes Park Health and providing at least $20 million over 10 years for capital projects and routine maintenance. Additionally, UCHealth has committed to hiring most Estes Park Health employees who are in good standing.

A majority of members of the new UCHealth Estes Park Board of Directors will be from the Estes Park community, according to the AG's office.