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NCMC, Inc.
1801 16th Street
Greeley,Colorado 80631-5199
(970)352-4121
April 25, 2016
Susan D. Carter, M.D.
Board of Trustees
North Colorado Medical Center
1801 16th St.#220
Greeley, CO 80631
RE: CERTIFICATE OF THE SUBLESSEE
Dear Dr. Carter:
As required under Section 5.13(c) of the Restated Operating Sublease, dated July 1, 2012,
between the Board of Trustees for North Colorado Medical Center, as Sublessor, and NCMC,
Inc., as Sublessee, NCMC, Inc. has made a review of its activities for the year ended December
31, 2015 for the purpose of determining whether or not as Sublessee, it has complied with all of
the terms, provisions, and conditions of the Restated Operating Sublease (The Sublease).
NCMC, Inc. finds in its best judgment, that it has kept, observed, performed and fulfilled each
and every covenant, provision and condition of the Sublease,to be performed on its part, and is
not in default in the performance or observance of any of the terms, covenants, provisions or
conditions thereof, except as follows:
Prior to the July 1, 2012 restatement,the Third Amended and Restated Operating
Lease dated November 1, 2003 required NCMC to maintain malpractice insurance in
the minimum amount of$1,000,000 per occurrence and to the extent of at least
$3,000,000 in the aggregate per policy year. NCMC obtained such insurance through
a tail policy effective on January 1, 1995, but the provider of such insurance for
claims has become insolvent. There currently is no pending litigation against NCMC,
Inc. for medical malpractice. Because of the bankruptcy of the insurance provider,
NCMC, Inc. only has medical malpractice coverage to the extent provided by the
State Guaranty Insurance Fund which provides limits of$100,000 per claim in
addition to payment of defense attorney fees and costs. NCMC, Inc. attempted to
replace the policy provided by the insolvent provider, but has not yet obtained such
a policy. At this time and until NCMC, Inc. is able to obtain reasonable replacement
coverage, NCMC. Inc. intends to self-insure this exposure.
2016-1407
This certificate is issued solely for the information of the "Sublessor," the "Authority," the
"Bond Insurer," and the "Trustee" as defined in the Sublease, and should not be used for any
other purpose.
Very truly yours,
Ken Schultz ,„.
Board Executive Officer
Cc: Esther Geisick, Clerk to the Board of County Commissioners
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