Hospital systems in Colorado reported improved finances in 2024

Hospital Systems in Colorado See Financial Improvements in 2024

After facing challenges with rising costs in the previous year, hospital systems in Colorado reported an improved financial year in 2024.

Among the six hospital systems in the Denver area, only CommonSpirit Health reported losses on its operations at the national level. CommonSpirit Health, which owns the Catholic hospitals previously part of Centura Health, reported a loss of $581 million, or about 1.5%, in the fiscal year ending in June. While it incurred an additional $196 million in losses from July to December, investments helped offset the losses.

On the other hand, AdventHealth, HCA Healthcare, and Intermountain Health posted profits at the national level, with HCA Healthcare leading in profit margin. HCA Healthcare reported a $5.76 billion profit in 2024, up from $5.24 billion in 2023.

The financial performance of hospital systems in Colorado has shown improvement from the previous year, although challenges remain. The average expenses of operating a hospital in Colorado increased by 7.4% in 2024, outpacing revenues, making it difficult for reimbursement to keep up.

Despite the financial improvements, hospitals are still facing challenges such as Medicaid uncertainty and increased uncompensated care. The outlook for hospital finances remains challenging, with potential threats such as Medicaid cuts impacting their operations.

Denver Health Sees Benefits from New Tax

Denver Health broke even on operations in 2024 and earned a $6 million profit with investments included. The hospital system has started receiving funds from a sales tax approved by Denver voters, which is expected to bring in about $65 million this year. This additional funding will help offset uncompensated care costs and expand services such as mental health and addiction treatment.

While the sales tax provides some financial stability, Denver Health remains cautious about potential Medicaid cuts by the federal government. Hospital systems are facing financial challenges this year, including possible increased costs due to tariffs and an uptick in uncompensated care.

Overall, hospital systems in Colorado are making progress in their financial performance, but ongoing challenges and uncertainties in the healthcare landscape continue to pose threats to their sustainability.

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