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State Finance Board Delays MMC Lease To Province Healthcare -- Tuesday, May 11, 2004 at 14:29

Santa Fe, N.M. -- The New Mexico State Board of Finance today deferred is decision on the documents that will govern the lease of Memorial Medical Center to Province Healthcare Company, pending the removal of language in the lease that restricts abortion services that may be provided by Province. The language on abortion services originally included in the lease by City/County negotiators had been struck from the lease by the negotiating team this week, but has not been formally adopted by either the City or the County. The negotiators’ actions were prompted by a decision by New Mexico Attorney General Patricia Madrid, that the language prohibiting abortion services was unconstitutional. Madrid reiterated her opposition to the abortion services language in testimony before the Finance Board today. In a somewhat unusual move, today’s Finance Board meeting was chaired by New Mexico Governor Bill Richardson and co-chaired by Lt. Governor Diane Denish. The Finance Board in general, and Governor Bill Richardson, continuously complimented Province as a company, and also the process by which it was chosen by the City and the County. But the Board would not budge on the issue of removing the abortion services language. The Board has tentatively scheduled a special meeting for next week to take up the MMC lease again, pending City and County adoption of a new lease striking the abortion services language. That City/County meeting is scheduled for 10:00 a.m. this Thursday, May 13th, in Council Chambers at City Hall. In response to the Board’s action delaying its decision, Las Cruces Mayor Pro-Tem Dolores Archuleta said, “I’m disappointed. But I am confident that after we deal with striking the language on abortion services we can move forward.” Archuleta said she was very encouraged with the governor’s comments praising Province Healthcare and the process in which it was selected. In addition to Archuleta, City Councillor Dolores Connor, District 2 and City Manager Jim Ericson attended today’s Finance Board meeting. Last week the Las Cruces City Council and the Doña Ana Board of County Commissioners unanimously approved a 40-year, $150 million lease, asset purchase agreement and escrow account agreement for the financially beleaguered Memorial Medical Center to the Tennessee-based Province. The City and County approvals of the agreements are subject to Board of Finance approval. Province has agreed to retain all MMC employees in good standing and to recognize their seniority. The contract between the City, County, and Province will satisfy the terms of an existing, but under-funded, employee defined contribution benefits plan. The 285-bed City/County owned hospital facility employs 1,100 workers. The City and County chose Province in December 2003 as the partner with which it wanted to negotiate the terms of a lease to operate the public hospital. It was felt that Province most closely met the terms of the community criteria established by both public bodies when looking for a new lessee. Province was chosen over Texas-based CHRISTUS Health, following a series of public meetings. The complex negotiations between Province and the City and the County's legal and advisory team took four months; two more than originally estimated at the time of the December decision. During the negotiation process, members of both the City Council and the County Commission visited other Province Healthcare-run facilities in Arizona and West Virginia to witness, first-hand, the manner in which Province ran other healthcare facilities. ### For media information: Terence Kelly, Media Specialist 505/541-2178 office 505/642-6220 cell phone The TTY number is: 505/541-2182