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Weld County General Hospital r M A4/6 2-d
SIXTEENTH STREET AT SEVENTEENTH AVENUE
GREELEY, COLORADO 80631
BOARD OF TRUSTEES BOARD OF TRUSTEES
SHELDON D.BROOKS,PRESIDENT - ROBERT S.DAVIS
PAUL L.GOOD,VICE-PRESIDENT January 23, 1973 VICTOR R.KLEIN
REX C.EATON,JR.,SECRETARY HARRY MYERS
HIROSHI TATEYAMA
Mr, Ed Krisor, Attorney at Law
Schneider, Shoemaker, Wham & Cooke
1421 Court Place
Denver, Colorado
Dear Ed:
The Board of Trustees of the Weld County General Hospital at its meeting
held on January 22, 1973 authorized you as our attorney to negotiate a
settlement out of court with the attorneys in the Euresti case. .The hospital
Board has elected to follow the option issued by the Secretary of Health, Ed-
ucation & Welfare to provide free or below cost care in an amount equal to
10% of the Hill Burton grants received within the last twenty years. The
Board has also agreed to waive the outstanding amounts owed to the hospital
by the plaintiffs in the case. It is our understanding that if a settlement is
negotiated it will be submitted to the Board for review and approval before
acceptance.
If I can be of any assistance please contact me.
Very-truly yours,
Richard H. Stenner
Administrator
RHS:rtb
cc: Thomas A. Richardson, Attorney at Law
Sam Telep, Attorney at Law
✓Glenn Billings, Chairman, Board of County Commissioners
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Weld County General Hospital - (2,0 e/a
1
SIXTEENTH STREET AT SEVENTEENTH AVENUE
GREELEY, COLORADO 60637 •
BOARD OF TRUSTEES BOARD OF TRUSTEES
SHELDON D.BROOKS,PRESIDENT ROBERT S.DAVIS
PAUL L.GOOD,VICE-PRESIDENT VICTOR R.KLEIN
REX C.EATON,.JR.,SECRETARY HARRY MYERS
HI ROSHI TATEYAMA
Board of Trustees •
Weld County General Hospital
Greeley, Colorado
Dear Sirs:
The Weld County General Hospital was constructed with the assistance of two
Hill-Burton construction grants. The first grant was approved in 1949 for the
construction of the original building in the amount of $900, 000. This project
was completed in 1952. The second grant for the North Wing Addition,except
for the fifth floor, was approved in 1960 in the amount of $698, 177. 03. Con-
struction was completed in 1962. In applying for the grant monies the hospital
agreed to provide a "reasonable amount of free or below cost care" to needy
indigents. On July 28, 1970 Colorado Rural Legal Services on behalf of named
plaintiffs filed suit against the Weld County General Hospital to enforce this agree-
ment. Since the original filing of the suit the Secretary of Health, Education and
Welfare has promulgated regulations for medical services for persons unable to
pay under the Hill-Burton Act, which were subsequently amended by the Federal
Hospital Counci on July 22 , 1972. The amended regulations have now become
effective and apply to this hospital effective January 1, 1973.
Under the amended regulations published in the Federal Register on July 22, 1972
this hospital will be presumed to be in compliance with the "free or below cost"
regulation if it elects and fulfills one of the following three options:
1 and 2. "Budgets for the support of, and makes available on request, un-
compensated services at a level not less than the lesser of 3% of the
operating costs or 10% of all Federal assistance provided to or on be-
half of the applicant under the Act.
3. Certifiesthat it will not exclude any person from admission on the ground ,
that such person is unable to pay for needed services and that it will make
available to each person so admitted services provided by the facility with-
out charge or at a charge below reasonable cost which does not exceed any
such persons ability to pay therefore. . . "
The rules promulgated by the Secretary of HEW also provide that the time limit to
the period of obligation for a reasonable volume of services to persons unable to pay
therefore is. . . "set as twenty years after the completion of construction in case of a
grant. . . "
Page Two
- Board of Trustees
January 19, 1973
Please refer to the attached Exhibit for a cost comparison of alternates #1 and #2e
Alternate #3 would be an open ended obligation and as of this time there is no way
a prediction could be made on the cost of this alternate.
The attorneys for the plaintiffs in the case against the hospital, Euresti vs Stenner,
have indicated to the hospital attorneys that they are interested in settling the case
out of court. The plaintiffs attorneys have indicated they will settle if the hospital
1) agrees to drop all suits and collection efforts against the named plaintiffs, and,
2) gives assurances that the hospital will give free services under the 3% open door
alternatives.
With the advice of our attorneys it is my recommendation that the hospital Board
agree to drop suits and collection efforts against the named plaintiffs and assure
the plaintiffs attorneys that the hospital intends to follow alternate #1 of presump-
tive compliance, namely that the hospital will provide free or below cost care in
accordance with alternate #1 in an amount equal to 10% of the Hill Burton grant
under the conditions promulgated by the Secretary of Health, Education & Welfare
as published in the Federal Register, Volume 37, No, 142, dated July 22, 1972.
Furthermore that the hospital attorneys be authorized to settle the case out of
court on this basis. The plaintiffs attorneys have indicated they will not settle
if the hospital follows the 10% alternative,
Very .truly yours,
•
Richard H. Stenner
Administrator
e
RHS:rtb
cc: Thomas A. Richardson, Attorney at Law
Ed Krisor
Sam Telep, Attorney at Law
..Glenn Billings
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RESOLUTION
RE: AUTHORIZING THE COUNTY ATTORNEY TO DEFEND THE
BOARD OF WELD COUNTY COMMISSIONERS AS DEFENDANTS
IN THE CASE, ENTITLED "RAFAELA EURESTI, ET AL. , vs.
RICHARD STENNER, AS ADMINISTRATOR OF THE WELD
COUNTY GENERAL HOSPITAL, ET AL, , IN THE UNITED
STATES DISTRICT COURT, DENVER, COLORADO, CIVIL
ACTION NO. C-2462.
BE IT RESOLVED, that the Board of County Commissioners, Weld
County, Colorado, authorizes the County Attorney to defend said Board
as defendants in the case of "Rafaela Euresti, et al. , vs. Richard Stenner,"
et al. "; also, to employ co-counsel and do whatever is necessary in
bringing the matter to a speedy conclusion.
The above and foregoing Resolution was, on motion duly made and
seconded, adopted by the following vote:
AYES:
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,„„*.:4„6„,/,/, ✓ ,/ 4---f. l
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and of ou t inissioners
Weld County, Colorado
Dated: September 30 , 1970, as of August 5 , 1970.
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