New state reports aim to educate Coloradans about health care costs and investments
New reports out Thursday provide an inside look at the health of Colorado hospitals: what's coming in and what's being put back into the community. And while hospital profits grow, so do expenses.
After years of operating in the dark, hospitals across Colorado are now required to disclose more information than ever before.
"If we can drive the optics, that helps individuals understand and communities understand what's driving the cost, then we can drive the solutions," said Kim Bimestefer, Executive Director of the Colorado Department of Health Care Policy and Financing.
Bimestefer's department is tasked by lawmakers with increasing hospital transparency. Financing director Nancy Dolson has been digging into the financial data and said, "They're the largest part of the health care spending dollar, more of the health care spending goes to hospitals than anywhere else."
Hospitals are now required to report income, costs. And for nonprofit, tax-exempt hospitals they're also required to illustrate how they are meeting their community benefit requirement.
The reports show in 2022, 46 nonprofits hospitals invested 7.2%, or $1.2 billion, back into the community. It jumps to 15 % when you include the shortfall from Medicaid reimbursement.
Tom Rennell, the Vice President of Financial Policy for the Colorado Hospital Association, says that number is growing.
"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."
New reporting requirements break down how hospitals are spending their mandated community benefit dollars.
Nearly 60%, or $721.8 million went to programs addressing provider recruitment, education, research and training, compared to $283 million that went to reduced-cost health care -- or charity care -- which is different from Medicaid, and felt largely by one hospital -- Denver Health.
"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," said Bimestefer.
While the state reports found patient revenues grew by more than 4%, Rennell says more current data shows a shift.
"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."
As part of the transparency reports, hospitals must include salaries for top paid staff at each hospital, but not for those who run an entire hospital system.
More information, Bimestefer says, can help paint a bigger picture.
"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?" added Bimestefer.
Jade Kelly, President of CWA 7799 which represents the hospital worker unions at both Denver Health and UCHealth, believes the information is long overdue, and still not enough.
"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," said Kelly.
Kelly hopes hospital transparency is something everyone is paying attention to.
Kelly said, "If you are a patient and I'm guessing you are, being a human being, we all require health care at some point. You should care about this."
On February 13th from 7:30-8:45am MST, the Department of Health Care Policy & Financing will be hosting a webinar to take a deeper dive into the three reports, provide greater context on their findings and answer attendee questions. Register here to join the conversation. And to read the full reports, go to: 2025 Hospital Financial Transparency Report, 2025 Hospital Community Benefit Report, and 2025 Colorado Healthcare Affordability and Sustainability Enterprise Annual Report.
