Colorado Releases Reports to Improve Awareness of Health Care Costs and Investments

Colorado Releases Reports to Improve Awareness of Health Care Costs and Investments

What’s coming in and what’s being put back into the community are two aspects of Colorado hospitals’ health that are examined in new studies released Thursday. Additionally, hospital expenses rise in tandem with revenues.

Hospitals in Colorado must now reveal more information than ever before after years of operating in the dark.

“If we can drive the optics, that helps individuals and communities understand what’s driving the cost, then we can drive the solutions,” stated Kim Bimestefer, Executive Director of the Colorado Department of Health Care Policy and Financing.

Lawmakers have assigned Bimestefer’s department the responsibility of enhancing hospital transparency. After examining the financial statistics, Nancy Dolson, the director of financing, stated, “They’re the largest part of the health care spending dollar, more of the health care spending goes to hospitals than anywhere else.”

Hospitals must now disclose their revenue and expenses. Additionally, hospitals that are nonprofit and exempt from taxes must demonstrate how they are fulfilling their community benefit obligation.

According to the statistics, 46 nonprofit hospitals returned $1.2 billion, or 7.2%, to the community in 2022. When you factor in the Medicaid reimbursement shortfall, it rises to 15%.

According to Colorado Hospital Association Vice President of Financial Policy Tom Rennell, that figure is rising.

“This year we are seeing a 50% increase in uncompensated care compared to last year. That’s driven largely by the Medicaid reenrollment program. Where Medicaid patients have lost coverage and are now becoming uninsured, we also early in the year had a lot of migrant activity and they weren’t able to pay for services.”

Hospitals’ use of the required community benefit funds is broken down by new reporting requirements.

While $283 million went to reduced-cost health care, or charity care, which is distinct from Medicaid and primarily felt by one hospital, Denver Health, about 60%, or $721.8 million, went to initiatives that address provider recruiting, education, research, and training.

Colorado Releases Reports to Improve Awareness of Health Care Costs and Investments

“We start with a message of ‘thank you’ and I think every hospital would say they are doing their fair share. I think if you ask Denver Health, and we have, Denver Health is taking a lion’s share more than anybody else, by far,” Bimestefer stated.

According to Rennell, more recent data indicates a change, even though the official reports revealed that patient revenues increased by more than 4%.

“There was actually no profit margin earned in the most recent revenue report. Revenue and expenses were at the same. So zero margin, so what that means? Margin I think of as savings. So that means no savings, no investment for the future no putting money away for building hospitals or building equipment for the future.”

Hospitals are required to reveal the salaries of their highest-paid employees in their transparency reports, but not those of the people in charge of a whole hospital system.

Fire Cleanup on Hold: L.A. County Requires Inspection Before Debris Can Be Removed

According to Bimestefer, more details can help create a more comprehensive image.

“I think the more important question than how much they are being paid is what are they being paid to do. And that’s the million-dollar question. Are they being are incented by their board of directors to drive the right behaviors that drive results for the communities that they’re in service to? Or are they being incented by the board of directors to drive bigger market share, and acquisition of more physician groups, and bigger profits and or revenues?” Bimestefer continued.

The information is long late and yet insufficient, according to Jade Kelly, president of UCW 7799, which represents the hospital worker unions at UCHealth and Denver Health.

Jury Delivers $100 Million Verdict Against Monsanto Over Chemical Exposure at Monroe School

“We have seen some immense progress in that realm. And I think one of the areas that we have seen some shortfalls is the lack of teeth,” Kelly stated.

Speaking as a Colorado resident rather than a union representative, she hopes that everyone is taking notice of the more transparency.

REFERENCE

profile
With more than two years of expertise in news and analysis, Eileen Stewart is a seasoned reporter. Eileen is a respected voice in this field, well-known for her sharp reporting and insightful analysis. Her writing covers a wide range of subjects, from politics to culture and more.