HomeMy WebLinkAbout09014
ORDINANCE NO. 9014
AN ORDINANCE AMENDING TITLE XIV OF THE PUEBLO MUNICIPAL CODE
BY THE ADDITION OF A NEW CHAPTER 14
BE IT ORDAINED BY THE PEOPLE OF THE CITY OF PUEBLO, that (brackets indicate
matter being deleted; underscoring indicates new matter being added):
SECTION 1.
The Pueblo Municipal Code is hereby amended by the addition of a new Chapter 14 of
Title XIV to read as follows:
CHAPTER 14
LIMITATION ON HOSPITAL SURPLUS
Section 14-14-1. Findings and Purpose.
The electors of the City of Pueblo find that the health care cost in the City of Pueblo are
higher than in the City and County of Denver. The health insurance cost for the consumer and
employers are 30% to 48% higher when the cost of a 41 year-old person is compared. This is
despite the difference in cost-of-living which is 11% higher in Denver than in Pueblo. The electors
of the City of Pueblo find that the main cause for this difference is the hospital health care costs
which are directly related to poor patient care especially in the area of patient safety. Another
cause of increased costs is acquisition of private physicians’ practices with the addition of
unnecessary facility fees. The electors of the City of Pueblo find that the inflated health care costs
have discouraged the influx of new businesses to the City, resulting in severe adverse economic
impact.
Section 14-14-2. Limitation Upon Hospital Surplus
Every hospital as defined in P.M.C. 11-12-2-(3) that is physically located within the City of
Pueblo is hereby subject to limitation upon the amount of surplus or retained earnings at the end
of any fiscal year of $25,000,000.00, the surplus shall be forfeited and subject to immediate
transfer to the City of Pueblo. Such surplus so forfeited to the City of Pueblo shall be deposited
by the City into a special fund for the purpose of being used for educational and healthcare
program within the City of Pueblo. Any hospital which is a component of a larger health system
shall be allowed to repay any outstanding loans from the parent hospital system properly due and
owing at the time of the enactment of this Chapter; however such hospital is otherwise prohibited
from transferring any surplus to the parent health system prior to paying the forfeit required by
this Chapter.
Section 14-14-3. Offset
Every hospital subject to the limitation on retained surplus outlined in Sec. 14-14-2 are
hereby compelled to utilize retained surplus to enact managerial and personnel measures to bring
quality of patient safety as defined in P.M.C. 11-12-2(6) and efficiency of care to a high level
whereby the result of medical treatment is consistent with the expected results in light of the
patient’s expected condition.
Section 14-14-4. Violation
In the event that any not-for-profit hospital fails to transfer its retained surplus in conformity
with Subsection 1 of this Chapter:
a) Any exemption from property tax or levy against real estate owned by such not=-for-profit
hospital shall be revoked by the City of Pueblo in conformity with Sec. 14-7-1 of the Pueblo
Municipal Code. City Council shall upon notice of failure of a not-for-profit hospital to forfeit
the surplus described in Section 1 shall take steps to remove the property tax exemption
pursuant to C.R. S. 39-3-111.5(1)(d).
b) Any exemptions to sales and use taxes provided to such not-for-profit hospital shall be
revoked by the City of Pueblo forthwith upon notice of the not-for-profit hospital’s failure to
forfeit the surplus
c) Any such not-for-profit hospital shall be required to refund in full the amounts collected
which are higher than allowed under Sec. 14-14-2. The refund shall be refunded to the
patient or any other entity which was overcharged.
FOR THE ORDINANCE ________
AGAINST THE ORDINANCE ________