Denver Health, Colorado’s only safety net healthcare provider, is facing a crisis. The escalating costs of uncompensated care have led to a staggering total of $140 million in the previous year, up significantly from $87 million in 2021. The strain on the health system’s budget is evident, with CEO Donna Lynne highlighting the lack of investment in crucial areas such as technology, facility maintenance, and staff.
In an effort to combat this financial challenge, Denver City Council has approved a 0.34% sales tax increase to be placed on the upcoming ballot. If passed by voters on Nov. 5, this increase would generate an estimated $70 million annually to support Denver Health. The current total sales tax rate, including the state’s 2.9% rate, would then rise to 9.15%. This additional funding is crucial for the health system to continue meeting the growing healthcare needs of the community and avoiding potential service reductions or care delays.
Denver Health’s financial struggles have been exacerbated by various factors, including the costs associated with providing care to migrants transported to the city from the southern border. The Denver city and county government reported significant expenses, having supported over 42,000 migrants at a cost exceeding $72 million. This additional burden has further strained Denver Health’s resources, making it clear that sustainable funding is essential for its operations.
Established in 1860, Denver Health has a long history of serving the community’s healthcare needs. In 1996, it was separated from the city and county of Denver, becoming the Denver Health and Hospital Authority. Despite receiving annual funding from the city, the health system has faced challenges in maintaining financial stability. While credit agencies like Fitch Ratings and S&P Global Ratings have acknowledged Denver Health’s improved performance, the need for ongoing support remains evident.
As Denver voters prepare to cast their ballots on the proposed sales tax increase, the future of healthcare in the city hangs in the balance. The outcome of this decision will not only impact the operations of Denver Health but also determine the level of care and support available to the community. It is crucial for stakeholders to recognize the importance of sustainable funding for healthcare providers like Denver Health and to prioritize the well-being of all residents.