Denver voters are facing a critical decision in the upcoming election – whether or not to increase the sales tax rate to provide much-needed financial support to Denver Health, the only safety net healthcare provider in Colorado. The proposed 0.34% sales tax increase aims to generate approximately $70 million annually for the struggling health system, which has been grappling with escalating uncompensated care costs.
Denver Health CEO Donna Lynne has raised concerns about the growing burden of uncompensated care on the health system. In the past year, uncompensated care costs surged to $140 million, a significant increase from $87 million in 2021. Without additional funding, Denver Health may face service reductions, delays in care, and deferred maintenance of essential facilities.
Lynne highlighted the impact of supporting migrants transported to Denver from the southern border on the rising uncompensated care costs. The Denver city and county government reported assisting over 42,000 migrants, totaling more than $72 million in expenses. This additional strain on resources further exacerbates Denver Health’s financial challenges.
Established in 1860, Denver Health was transferred to the state of Colorado in 1996, leading to the creation of the Denver Health and Hospital Authority. Despite an annual operating agreement with the city of Denver, the health system still faces funding gaps. While Colorado lawmakers provided $5 million in one-time funding this year, it may not be sufficient to address the ongoing financial pressures.
Fitch Ratings and S&P Global Ratings recently affirmed Denver Health’s BBB ratings and stable outlooks, citing improved operating performance. However, the reliance on one-time funding and limited investment in critical areas like technology, facility maintenance, and workforce development raise concerns about the sustainability of the health system’s operations.
To ensure the long-term viability of Denver Health and meet the growing healthcare needs of the community, sustainable funding solutions are essential. The proposed sales tax increase could provide a stable source of revenue to support vital services and address the ongoing financial challenges faced by the health system.
The healthcare funding crisis in Denver underscores the urgent need for increased financial support to safeguard essential healthcare services for vulnerable populations. With the upcoming election, Denver voters have the opportunity to make a difference in securing the future of Denver Health and ensuring access to quality healthcare for all residents.