Memorial Health System in Colorado Springs is preparing to sue Colorado's Public Employees' Retirement Association over its claims that the system would owe PERA as much as $246 million if it became a private non-profit, according to a Gazette report.
A system spokesperson said Memorial is prepared to go to court to force PERA into a more reasonable settlement, since negotiations have come to a standstill. In January, the $246 million estimated halted Memorial's plans to convert the system into an independent non-profit — a move the system was hoping to vote on by April. At the time, the system said that figure far exceeded what it could afford.
In negotiations since January, PERA's estimates have ranged from $150 million to $191 million, based on revised financial estimates, according to a Memorial spokesperson. PERA told Memorial it couldn’t provide a final figure until a deal to spin off the hospital was finished.
PERA's fluctuating estimates are hindering the system's conversion process. A city council member said it's time for PERA to "actually going to negotiate in good faith and come to a decision on this stuff instead of keep kicking the can down the road," according to the report.
A PERA spokesperson was not available for comment in the news report.
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A system spokesperson said Memorial is prepared to go to court to force PERA into a more reasonable settlement, since negotiations have come to a standstill. In January, the $246 million estimated halted Memorial's plans to convert the system into an independent non-profit — a move the system was hoping to vote on by April. At the time, the system said that figure far exceeded what it could afford.
In negotiations since January, PERA's estimates have ranged from $150 million to $191 million, based on revised financial estimates, according to a Memorial spokesperson. PERA told Memorial it couldn’t provide a final figure until a deal to spin off the hospital was finished.
PERA's fluctuating estimates are hindering the system's conversion process. A city council member said it's time for PERA to "actually going to negotiate in good faith and come to a decision on this stuff instead of keep kicking the can down the road," according to the report.
A PERA spokesperson was not available for comment in the news report.
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