City Council berates Memorial Health System

Colorado Springs City Council lit into Memorial Health System officials on Monday, continuing a steady beat of criticism that has led to consideration of selling the municipal hospital system.

The falling-out began months ago and has included dissatisfaction with administrators' salaries, cost overruns and a lack of communication with city officials.

"Information and communication is key to this relationship," said Councilman Randy Purvis, noting that even Monday's monthly report wasn't received ahead of time.

"You whip 15 slides past me," Purvis said, "and I'm put in a position to draw the conclusion I'm led to draw."

He called Memorial's communications "irregular, inconsistent and at times completely lacking."

"As a member of council, to fulfill my duty, I can't be blindsided," he said. The council approves Memorial's budget and appoints the board that oversees the hospital administrators.

Said Mayor Lionel Rivera, "We don't like being surprised."

The tongue-lashing came two weeks after Councilman Jerry Heimlicher suggested the city consider selling Memorial and asked the city attor- ney to research the legal hoops.

Council members have been upset for months after city audits found weaknesses and policy lapses, such as cost overruns on Memorial's construction projects and its failure to secure a contract with the architect until the work was nearly finished.

More recently, some council members were perturbed about not learning about the hiring of CEO Larry McEvoy until a day after The Gazette reported it. Some also don't approve of his being hired at an annual salary of $550,000, about $100,000 more than his longtime predecessor, Dick Eitel.

A major point of contention is Memorial's growing burden of care that's not paid for, including charity care and the gap between normal hospital charges and reimbursements from insurance companies, Medicare, Medicaid and Tricare. That figure reached $65.6 million last year.

The council is forming a committee to study the problem and recommend action.

Heimlicher, Purvis and Jan Martin will represent the council. Three Memorial board members and five citizens will round out the 11-member panel.

Rivera said that although he served on the selection committee that chose McEvoy, he called McEvoy's salary "unreasonable" for a public hospital administrator and fears it will drive other Memorial executive salaries up.

"I wish there was a way to bring them down across the board," he said, acknowledging that the salary was based on a compensation survey.

Hospital board Chairman Mike Edmonds assured the council that board members are working on a governance proposal and a communications plan to present at a joint meeting with the council in late July.

"We take your comments and constructive criticism very seriously," he said.

CONTACT THE WRITER: 636-0238 or pam.zubeck@gazette.com