The bill would set that each nonprofit hospital spend at least 3% of its revenue from treating patients on community benefit, unless its federal and state tax exemptions are worth less than that
Nonprofit hospitals are required to show they spend money on “community benefit,” but a bill in the Colorado legislature would require them to invest more and focus on different priorities.
Rep. Judy Amabile, a Boulder Democrat who sponsored the bill, said the exact thresholds and definitions are open to discussion, but that she thinks hospitals need to better align what they’re offering with their communities’ priorities. “It would be the most aggressive threshold in the nation, by far,” he said. “I don’t know why we would differ that much from the federal definition.”In his State of the State address in January, Gov. Jared Polis pledged to hold hospitals “accountable,” particularly for what they claim as community benefits.
Whether Medicare pays enough is controversial. A committee that advises Congress on Medicare has found, though the hospital industry has pushed back on that conclusion. It’s more widely agreed that Medicaid’s rates are low, though still better than attempting to collect from uninsured patients. Dan Weaver, spokesman for UCHealth, said counting research and training is appropriate, but it’s only part of what they contribute. The system’s $1.1 billion in community benefit includes $388 million in uncompensated care, as well as behavioral health services like sending clinicians along with police and programs to address suicide and obesity, he said.
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