Data from the state’s Office of Health Policy and Finance supports what Governor Polis said about hospitals this week. CHA said these figures were not current.
Denver — Nonprofit hospitals pay no taxes.
In return, they are expected to invest money in the communities they serve.
Colorado Governor Jared Polis, a Democrat, accused nonprofit hospitals of hoarding money and overcharging patients in a state speech.
“Some large hospital systems are making record profits, paying zero taxes and running huge reserves while still overcharging their customers,” Polis said on Tuesday. rice field.
On Wednesday, Colorado’s Department of Health Policy and Funding (HCPF) released a financial report showing data on hospital finances.
The report shows how many days there were reserve hospitals in 2019, 2020 and 2021.
For example, UCHealth had cash on hand (reserves) for 340 days in 2019, 430 days in 2020, and 469 days in 2021.
HCPF Executive Director Kim Bimestefer said, “I applaud hospitals that are on sound financial footing. case,’ he said.
A UCHealth spokesperson said the hospital had 308 days of cash on hand as of today.
As another example, Children’s Hospital Colorado had cash on hand for 321 days in 2019, 333 days in 2020, and 358 days in 2021.
High cash reserves help hospitals get higher bond ratings and better interest rates to borrow money.
“I would say that 300 days or so is enough to get an A, AA rating, and you can borrow at a very attractive interest rate,” Bimesteffer said.
Colorado Hospital Association (CHA) CEO Jeff said: Tyman. “High inflation, rising costs growing faster than income, and more patients.”
CHA recently released a report showing hospitals spent a total of $1.6 billion in 2020 for the benefit of their communities.
Think of community benefit spending as a way for non-profit hospitals to benefit from paying no taxes.
Most of the $1.6 billion spent in 2020 was spent on non-reimbursed and free or reduced healthcare.
Hospitals need to hold meetings to hear how members of the community want hospitals to spend their money instead of paying taxes.
The state wants a better explanation of what is needed and how hospitals decide how to spend the money.
“Think about what your tax dollars are going to be used for. It may be used to help people with housing. It may be used for food insecurity. It may be used for mental health and substance abuse. We often call behavioral health services,” said Bimestefer.
“We really need more detailed reporting, so we can pinpoint exactly what’s being invested in behavioral health, food, housing and more,” said Nancy Dolson. Reports don’t give you that kind of granularity.” , HCPF Special Financing Section Chief.
Bimestefer suggested that hospitals use the money to reduce patient costs.
“Megasystems, especially universities, are too focused on expansion, acquisition of physician groups, construction and acquisition of hospitals, which does not necessarily benefit the community. It may also bring
In an emailed statement, UCHealth granted an exception to the state’s report.
“As HCPF has done in its past reports, it uses outdated data, selects date ranges in which investments have increased, and uses methodologies that do not follow Generally Accepted Accounting Principles (GAAP). Ups and downs are not the same as income and provide an accurate picture of financial health. Like other individuals and institutions investing in the market, UCHealth has suffered significant losses over the past year. Nevertheless, every dollar we make stays in Colorado and is reinvested in our patients, communities and employees.
The HCPF also suggests that Colorado’s nonprofit hospitals are not providing sufficient community benefit investments to support behavioral health. In fact, the Lown Institute recently ranked UCHealth among the best in the country for social responsibility, community benefit, value, and patient outcomes. In fiscal 2022, UCHealth spent $1.1 billion in financial assistance, subsidized care, and other areas that directly benefit patients and communities. UCHealth is Colorado’s largest provider of Medicaid services, with nearly 25% of his Medicaid patients in Colorado receiving care at his UCHealth. UCHealth also increased its investment in behavioral health services by $150 million. This includes adding 49 additional inpatient behavioral health beds and providing tens of thousands of virtual and in-person behavioral health visits. “
Bimesteffer said the state wants to do more accounting and more often. She wants the hospital to report its financial status to the state on a quarterly basis.
“We need to ask tax experts for an estimate. What are they spending in the community? Is that at least the same tax they collect?” Dolson said.
“When we hear about increased reporting and transparency requirements, we’re open to learning what those look like, but I think a lot of that is in place now.
He mentioned multiple new policies passed by the state legislature that are not yet fully implemented, so please let us know if more explanation is needed.
“There have been 17 major reforms in the last few years. Once you understand what you need, it can be very ineffective and really costly,” says Tieman.
Tieman believes the financial situation in the state’s report released on Tuesday does not reflect the current situation facing hospitals.
“Today we are facing an inflationary situation that has not been like this for decades. We are plagued by huge labor problems and shortages. We are ready for the next pandemic,” said Tieman. “Half of Colorado’s hospitals do not have sustainable margins, which means viability is an ongoing concern.”
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