Artificial Intelligence
Support Senate Bill 26-189
SB 26-189 includes important and necessary updates to the existing statute established under SB 24-205, as well as carefully crafted language that recognizes the existing regulatory structure governing HIPAA covered entities and their business associates.
Hospitals remain subject to the bill’s employment provisions in their role as employers. The disclosure provisions of this bill will also require hospitals to disclose the use of third-party eligibility screening technology for the Hospital Discounted Care program.
CHA recognizes the work of the AI workgroup over the past several months in helping to inform this effort, and especially thanks Joe Theine, CEO of Southwest Health in Cortez, for his service as the hospital representative on the taskforce.
Why It Matters
- The leading edge: Health care is uniquely positioned to benefit from AI – from reducing administrative costs to helping rural hospitals stay viable. But the law’s expansive reach and unclear definitions will slow or halt deployment of tools that can improve efficiency and support patient care.
- Duplication and confusion: Hospitals already operate under some of the nation’s strongest patient-protection laws. HIPAA, civil rights laws, medical licensing, professional standards, and hospital accreditation all guard against privacy violations, substandard care, and discriminatory practices. This new AI law adds a secondary, conflicting layer that creates confusion rather than stronger protections.
- Risk without reward: Even good-faith providers face new liability exposure if AI tools are misclassified. These risks fall hardest on small and rural hospitals – the very facilities that stand to benefit the most from responsible AI tools.
- Compliance isn’t free: Hospitals will bear the cost of experimental policy. Meeting new reporting, governance, and documentation requirements will divert resources – staff time, technology budgets, and clinical support – away from patient care.
CHA’s Take:
Colorado’s current AI law does not strengthen patient protections, improve care, or advance responsible innovation in health care. Instead, it threatens access, increases costs, and exposes hospitals to unnecessary legal risk.
The History
Colorado’s new artificial intelligence law (SB 24-205) was designed with broad consumer protections in mind – but its vague definitions, sweeping scope, and reporting requirements put hospitals and patients at risk. Unlike other industries, health care is already governed by strict federal and state laws that protect patient privacy, prohibit discrimination, and enforce standards of care. Adding a new and untested regulatory framework on top of that will chill innovation and burden providers who are already struggling.
What happened in Special Session?
During the 2025 Special Legislative Session, lawmakers passed SB 25B-004 to delay the implementation of SB 24-205 to June 2026.
