The Park Hospital District board remains at least two weeks away from resolving a financial dilemma that depleted its 2026 operating budget, board members said Wednesday after meeting for about 2½ hours in executive session with legal counsel.
The board scheduled another special meeting for June 23 to consider actions needed to finalize a solution.
The board was “not ready” to discuss or take action on matters involving the former Estes Park Health retirement plan administered by Ascensus LLC., a financial services company that provided the retirement plans for Estes Park Health employees, according to Cory Workman, chair of the Park Hospital District.
Under the affiliation agreement that transferred management of Estes Park Health to UCHealth, the Park Hospital District is limited to spending no more than $200,000 annually from the $4.6 million in property tax revenue it collects. The remaining $4.4 million in property tax money is to be paid to UCHealth.
Expenses incurred by PHD just in legal fees through the first four months of the year total more than $210,000. Projections for the remainder of the year, excluding existing or future outstanding legal charges, are about $59,000.
Because of the financial shortfall, PHD attorneys have been negotiating solutions with UCHealth, which is anticipated to result in an agreement with UCHealth. Such an agreement would provide the essential information needed for PHD to approve an amended 2026 budget.
“How do we account for the extra expenses for 2026 and going forward into 2027?” Workman asked in explaining one detail of the supplemental agreement.
Another issue involving finances includes “the mechanics of transferring tax dollars based on the affiliation agreement,” Workman explained.
The affiliation agreement with UCHealth only required PHD to provide UCHealth with all but $200,000 of property tax receipts, along with any excess funds at the end of each year. A memorandum of understanding is expected to define whether the funds transfer will entail monthly, quarterly, or annual payments.
Both the Ascensus and cash shortfall are topics that affect a revised budget currently being prepared by board treasurer Brigitte Foust, Workman said.
According to the meeting agenda, during the private session, the board was to discuss legal advice regarding the Ascensus retirement plan and related financial obligations, as well as the memorandum of understanding with UCHealth, including the flow of funds and the associated budget request.
“We want to make sure that we have the right amount, right information to make the decision, because at the end of the day, we want to make sure that those that have contributed to the plan are respected, but also the money in the district is respected,” Workman said.
In another action, the board approved a final rendition of a request to UCHealth to provide PHD with records as required by the Colorado State Archives.
Materials that must be kept indefinitely include legal status documents, official minutes, and legislative records. Other records, including financial accounting and personnel records, must be preserved for seven years.
In recognition of the volume of material being requested, the board is requesting an inventory of the documentation it can expect to receive to assist in determining storage requirements.