Special election set in Memorial Health lease deal

Colorado Springs residents will get a chance to vote on plans by University of Colorado Health to lease Memorial Health System in a special election Aug. 28.

If voters approve the deal, UCH will take over the city-owned hospital Oct. 1.

UCH, the new organization formed by the joint operating agreement between Poudre Valley Health System and the University of Colorado Hospital, submitted a bid in December to lease the hospital for $1.79 billion over 40 years.

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The bid included an offer to the city of $74 million up front, with annual payments of $5.6 million, plus a profit-sharing agreement estimated at $2.5 million per year.

The bid also included an annual commitment of $3 million toward establishing a branch campus of the University of Colorado School of Medicine at the University of Colorado at Colorado Springs.

Colorado Springs City Council approved the bid earlier this year.

The full lease agreement for Memorial between the city and UCH will be made public a noon Friday.