Denver (KDVR) — Colorado hospitals have been one of the highest profits in the country for the third consecutive year.
Hospitals in the metropolitan area of Denver made a total profit of about $ 1.4 billion in 2020, according to a report titled “Hospital Insights” released by the Colorado Department of Health Policy and Finance.
Because Colorado is ranked as one of the most expensive hospitals, good news for Colorado hospitals’ profits is often bad news for patients.
“Some Colorado hospitals are primarily systems that are over-profitable, which means they are billing commercial insurance customers more than they need to be.” Kim Bimestefer, Managing Director of the Colorado Department of Health Policy and Finance, said.
Bimestefer’s department wrote a report that it found that insurance companies would reimburse hospitals for $ 1.66 for every $ 1 they spend on care. This means that the average rate of return in 2020 will be 9.3%.
The report shows that without the COVID Relief Fund, local hospitals would have had major problems. But for major hospital systems such as UC Health, Banner Health, HCA HealthOne, Centura, and SCL Health, Bimestefer says there is no doubt that these hospitals can reduce costs and still maintain decent profits. I did.
“Hospitals can get very reasonable profits. They sit in huge reserves. These reserves generate the same profits as the patient service benefits they are getting. “Bimestefer said. “They lower their profits, still stay in their reserves, make a very good tomorrow to be able to invest, and lower prices for families and employers in this state who have to save money. You can, “said Bimestefer.
Which commercial hospital is making the most profit?
HCA HealthOne, Colorado’s largest commercial system, has the highest profit margins in 2020 for patient services. It is 20.5%.
However, UC Health, a tax-free non-profit system, can double profits in just two years. Revenues in 2019 were $ 540 million, with more than $ 1 billion expected in 2021, according to the report.
“For us, it’s really worrisome because they’re technically non-profit hospitals. I think there’s a really legitimate question, are they acting like non-profit hospitals?” Colorado Adam Fox, Deputy Director of the Consumer Health Initiative, asked.
Fox said that Problem Solver’s non-profit hospitals are supposed to invest in the community instead of taxes, but the hospitals are primarily about what the investment in the community is. Decide with.
“What we’ve seen is that hospitals invest in new programs, facilities and units to provide services that may or may not be needed, but ultimately fill up revenue even more. “I will.” Fox said.
Colorado hospitals invested $ 863.3 million in community health care in 2020, but in a press release on the Hospital Insights report, the Department of Health Policy and Finance said: Unfortunately, the ministry does not have enough details to identify where and how the state’s non-profit tax-exempt hospitals are spending. Community interests Nor can it be adequately determined whether the investment in the interests of these communities matches the specific needs of each community. “
The report found that hospital consolidation also led to higher patient prices. Currently, very few hospital systems control most of the market, pointing out that private clinics are increasingly being acquired.
According to the report, currently only 30% of doctors are independent and 70% are currently owned by the hospital system or private equity firm.
“All credible reports say that mergers and acquisitions at the hospital level will raise prices,” Bimestefer said.
Will hospital profits be paid to employees?
During the pandemic, stories of hospital employee fatigue and burnout were common, but Fox believes the hospital used their growing income to make better payments for doctors and nurses. I said there was no reason.
“They seem to be at least underinvesting in people, but after all, even if they invest more in it, they’re still overburdening consumers,” Fox said.
In a statement, the Colorado Hospital Association told FOX31: COVID-19 Community during a pandemic. “
CHA also said, “There should be no conversation about affordable health care that does not consider the quality and accessibility of the care provided.”
However, hospital insight reports found that hospital benefits and integration did not lead to improved patient outcomes. Colorado and Alaska were the only two states in the top 10 in all four indicators of hospital cost, price, and profit.
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