Colorado Hospitals’ Financial Health Report Released
Denver, CO – The Department of Health Care Policy and Financing (HCPF) announced the findings of its annual financial health report for Colorado’s hospitals this past Sunday. While many facilities display signs of financial strength, significant challenges persist for others.
The 2025 Hospital Financial Transparency Report reveals a complex landscape in Colorado’s healthcare sector. HCPF Executive Director Kim Bimestefer noted that the report sheds light on where healthcare dollars are allocated, highlighting a $1 billion annual increase in hospital revenues. This growth is reflected in rising insurance premiums paid by Coloradans and employers. However, the report stresses that not all hospitals are faring well; urban nonprofit hospitals reported a staggering $1.5 billion in profits, while nearly a third of hospitals, particularly rural and safety net facilities like Denver Health, are struggling with negative profit margins.
Despite an overall 4.8% increase in patient revenues from 2022 to 2023, rising labor and supply chain costs, alongside inflation, have significantly squeezed profit margins. In terms of community contributions, Colorado’s tax-exempt hospitals invested $1.2 billion in community benefits in 2022. However, several hospitals fell short in aligning their investments with community health needs, particularly in behavioral health.
The report also highlighted Denver Health’s substantial charity care costs, which amounted to 12.1% of its net patient revenue, equating to $88.1 million in 2022 alone. This is significantly higher than other institutions.
HCPF’s effort to enhance hospital reimbursements has resulted in a financial benefit of over $430 million annually for healthcare providers. A webinar is set for February 13, providing an opportunity for deeper discussion on the report’s findings.
For more details, Colorado residents can register for the webinar through the HCPF’s website.