Note 18 – Related Organizations and Jointly Governed Organizations
UNIVERSITY OF COLORADO HOSPITAL (UCH)
In accordance with 1991 State legislation, UCH was established as a separate and distinct entity. Requests for additional information should be addressed to UCH, Chief Financial Officer, Mail Stop F-417, P.O. Box 6510, Aurora, Colorado 80045.
CU Denver | Anschutz and CU Medicine have several types of financial transactions with UCH. On an annual basis, CU Denver | Anschutz or CU Medicine and UCH enter into agreements specifying the fees to be charged for services and the allocation of expenses between the two organizations. In certain circumstances, CU Denver | Anschutz may bear the entire cost of certain services in exchange for educational or other services provided by UCH. In some instances, the fee charged by CU Denver | Anschutz, CU Medicine, or UCH is a set amount for specific services to be provided. In other circumstances, the fee charged is based upon the amount or type of services requested by either CU Denver | Anschutz or UCH.
Examples of services provided by CU Denver | Anschutz to UCH include telecommunications services, rental of office space, and resident doctors. Examples of services provided by UCH to CU Denver | Anschutz and patient services for sponsored research projects. In general, amounts receivable from, or payable to, UCH are settled within the following calendar quarter.
Total payments issued by UCH to CU Denver | Anschutz approximated $59,100,000 and $59,638,000 for years ended June 30, 2018 and 2017, respectively. Total payments issued by CU Denver | Anschutz to UCH for the years ended June 30, 2018 and 2017 approximated $9,587,000 and $10,344,000, respectively.
For the years ended June 30, 2018 and 2017, UCH distributed approximately $26,215,000 and $26,672,000, respectively, reported as gift revenue by the University.
During the years ended June 30, 2018 and 2017, CU Medicine recognized approximately $94,358,000 and $65,798,000, respectively, in health services revenue from UCH in support of clinical and academic missions. CU Medicine also received approximately $35,546,000 and $42,343,000 during the years ended June 30, 2018 and 2017, respectively, from UCH for amounts earned for services performed by CU Medicine faculty members but required to be processed through UCH (such as the State medically indigent program, Ryan White, and other miscellaneous programs).
As of June 30, 2018 and 2017, the University recorded an accounts receivable from UCH of $5,983,000 and $4,233,000, respectively, for various services provided. As of June 30, 2018 and 2017, the University had no accounts payable owed to UCH. Generally, amounts due are paid during the current or subsequent month.
AURARIA HIGHER EDUCATION CENTER
AHEC, established by legislation in 1974, is jointly governed and utilized by CU Denver, the Community College of Denver, and Metropolitan State University of Denver. The institutions share the costs of operating common educational, library, and other auxiliary facilities. Costs of the common facilities are shared in accordance with an operating agreement between AHEC and the respective institutions. During the years ended June 30, 2018 and 2017, the University incurred expenses related to the common facilities approximating $10,589,000 and $11,035,000, respectively, for payments to AHEC.
As of June 30, 2018 and 2017, the University recorded an accounts payable to AHEC of $917,000 and $1,432,000, respectively, for services rendered but not yet paid, and for fees collected for the spring end of term but not yet paid. As of June 30, 2018 and 2017, the University had no accounts receivable due from AHEC.
In addition, the University leases space from AHEC. As of June 30, 2018 and 2017, the University has future operating lease payment obligations to AHEC of $4,151,000 and $2,244,000. For related party lease transactions, see Note 9.
Detailed financial information may be obtained directly from AHEC at 1201 5th Street Suite 370, Denver, Colorado 80217-336.
UNIVERSITY OF COLORADO HEALTH AND WELFARE TRUST
The Trust was formed June 28, 2010. Trust members are the University, UCH, and CU Medicine. The purpose of the Trust is to provide healthcare benefits to the employees of the Trust members on a self-insured basis. The University does not have financial accountability over the Trust. Self-insured risks are transferred to the pool.
The Trust paid medical claims on behalf of the University of $214,640,000 and $197,066,000 during the fiscal years ended June 30, 2018 and 2017, respectively. The University’s payments to the Trust were $230,759,000 and $191,461,000 for the years ended June 30, 2018 and 2017, respectively, and the employees’ payments were $29,642,000 and $25,189,000, respectively. As of June 30, 2018 and 2017, the University had accounts receivable owed from the Trust of $879,000 and $830,000, respectively, and accounts payable due to the Trust of $0 and $6,987,000, respectively.
Detailed financial information may be obtained directly from the Trust at 1999 Broadway, Suite 820, Denver, Colorado 80202.
© Office of University Controller 2018