DENVER, Jan. 2, 2026 – The Colorado Hospital Association (CHA) today issued the following statement in response to Governor Polis’ proposed FY 2026 state budget cuts:

Colorado’s hospitals and health systems recognize the challenging fiscal reality our state faces and understand the need for difficult choices. However, proposed reductions to provider rates—following the repeal of a rate increase approved by the General Assembly last year—will harm hospitals and frontline providers.

Nearly 70 percent of Colorado hospitals are financially vulnerable as expenses continue to rise faster than reimbursement. At the same time, the number of uninsured Coloradans is expected to continue to grow as federal coverage supports expire, making it more difficult for patients to obtain needed care and further increasing the uncompensated care burden on hospitals.

Looking ahead, hospitals face another wave of cuts as federal reductions to health care funding take effect – an estimated $10 billion in total losses to Colorado by 2032.

“Hospitals have been the pressure valve in Colorado’s health care system absorbing cost increases, workforce shortages, and growing demand,” said Jeff Tieman, CHA president and CEO. “But even the strongest system can only take so much pressure. As it stands, the majority of Colorado hospitals operate with thin or negative margins, two hospitals have recently closed, service lines (including labor and delivery) have been cut, and charity care is growing at 30 percent a year.

In these conditions, any rate cut threatens access to care and hospitals’ short- and long-term sustainability.”

CHA urges state lawmakers and the Joint Budget Committee (JBC) to carefully evaluate any changes to Medicaid or hospital financing that could threaten care availability. The Association and its members stand ready to work with the JBC and other health care stakeholders to identify strategic Medicaid reforms that improve efficiency and protect both patients and providers.

About CHA

CHA is the leading voice of Colorado’s hospital and health system community. Representing more than 100 member hospitals and health systems throughout the state, CHA serves as a trusted, credible, and reliable resource on health issues, hospital data and trends for its members, media, policymakers, and the general public. Through CHA, Colorado’s hospitals and health systems work together in their shared commitment to improve health and health care in Colorado. Learn more at www.cha.com.

# # #