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Exempla Completes Governance Changes

October 05, 2012

SCL Health System and Community First Foundation agreement strengthens local nonprofit health system and increases support for community

Media contacts

Chris Woolsey, SCL Health System
303-813-5065 (office), 312-505-5268 (mobile),
Caitlin Jenney, Community First Foundation
720-898-5919 (office), 720-271-2045 (mobile),

DENVER – Oct. 3, 2012 – Following the Oct. 1, 2012, determination regarding Exempla Healthcare by Colorado Attorney General John Suthers, Exempla’s members have completed governance changes that further strengthen the nonprofit system of three hospitals and its network of physician clinics.

The completion of the agreement between SCL Health System and Community First Foundation – the two nonprofit members of Exempla – also brings new financial resources through Community First Foundation to promote health and wellness and enhance services for the Denver metro area.

“The transactions permitted by the Attorney General’s decision will greatly benefit our local communities.  We look forward to continuing our mission, with the support of SCL Health System, as a leading, nonprofit health provider dedicated to the Denver metro area,” said Bob Ladenburger, president and CEO of Exempla.

SCL Health System will pay Community First Foundation $275 million over 20 years. Community First Foundation received an initial payment of $45 million upon the closing of the transaction.  It has dedicated $25 million of those new funds exclusively for the communities served by Exempla Lutheran Medical Center.

“Challenging times like these highlight our communities’ needs and the importance of new charitable resources to address them,” said Marla J. Williams, president and CEO of Community First Foundation. “In addition to keeping Exempla intact as a nonprofit system, these new dollars will allow Community First Foundation to continue its longtime commitment to fund vital community initiatives, support nonprofit organizations, and assist individuals with their charitable giving.”

Under the agreement, SCL Health System and Community First Foundation each remain members of Exempla, which will be governed by a community-based board of directors. SCL Health System will appoint nine of the 10 directors on the Exempla board and Community First Foundation will appoint one director. Exempla will retain ownership of its assets and SCL Health System will continue to oversee operation of the Exempla facilities, as it has since 2010.

“SCL Health System is firmly committed to Denver and to Colorado. This agreement underscores our desire to see this high-quality, patient-centered health network in Denver continue to thrive,” said Michael A. Slubowski, president and CEO of SCL Health System. Exempla includes Exempla Good Samaritan Medical Center in Lafayette, Exempla Lutheran Medical Center in Wheat Ridge, Exempla Saint Joseph Hospital in Denver, and the Exempla Physician Network of more than 100 clinics.
SCL Health System relocated its system headquarters to Denver in March, a move that will bring an additional 750 jobs on top of its 8,000 existing employees in Colorado.

Read more about Suthers’ decision.

Read more about the details of the agreement from the July 31, 2012 press release.

About Community First Foundation
Community First Foundation has been serving the community for more than 35 years, helping donors and nonprofits come together to improve quality of life in the Denver metro area.  It funds community programs, supports the services of nonprofit organizations, and assists individuals with charitable giving.  The foundation is also known for its innovative programs such as GivingFirst.org, an online giving
resource that has raised more than $30 million for Colorado nonprofits since 2007 and is the platform for Colorado Gives Day.  For more information, visit http://www.communityfirstfoundation.org/.

About Exempla Healthcare
Exempla Healthcare was formed in 1998 and has two members, Community First Foundation and SCL Health System. Exempla serves metropolitan Denver through its three hospitals – Exempla Good Samaritan Medical Center, Exempla Lutheran Medical Center, Exempla Saint Joseph Hospital – and the Exempla Physician Network of primary care, occupational medicine and specialty physicians. Exempla is dedicated to improving the health of the people and communities it serves. For more information, visit http://www.exempla.org/.

About SCL Health System
SCL Health System is a faith-based, not-for-profit health care organization that operates 11 hospitals, four safety net clinics, one children’s mental health center and more than 100 ambulatory service centers in four states – California, Colorado, Kansas and Montana. Based in Denver, the $2.7 billion health network is dedicated to improving the health of the communities and individuals it serves, especially those who are poor and vulnerable. On an annual basis, SCL Health System regularly provides more than $200 million in community benefit, including services for the poor, health screenings, educational programs, community donations and research. SCL Health System was founded by the Sisters of Charity of Leavenworth, who opened their first hospital in 1864. In 2011, the sisters transferred sponsorship of SCL Health System to Leaven Ministries. To learn more about the health system, visit www.sclhealthsystem.org.