The joint operating agreement between Columbia HCA and the University Hospitals Authority was finalized in May 1997. The partnership allows the teaching hospitals to survive in the new health care market place. Under terms of the agreement:

• Columbia pays the state $40 million up front in the first three years of the partnership.
  
  
• Each year, the authority retains the first $9 million in profits. Columbia receives the next $30 million.
  
  
• The state will continue to provide $26.5 million in subsidy to the partnership in return for maintaining current levels of care to indigent patients.