Tieman: Hospitals have made progress saving Coloradans money on health care
In response to the op-ed published on Monday, Nov. 27, “Zornio: 5 big ways Coloradans could save money other than cutting property taxes”
In the past 15 months, I have personally visited more than 80 hospitals throughout Colorado. The work taking place in these facilities every day is saving lives, healing people, and building communities. It is also important to say that Colorado hospitals continue to be partners in the state’s efforts to reduce health care costs – and have made meaningful improvements for patients.
To claim that “Colorado hospitals charge dramatically more than hospitals in other states, often illegally and unfairly” is simply untrue. According to the latest data available from the Centers for Medicare and Medicaid Services (CMS), Colorado hospital costs were $692 per person less than the U.S. average. For a family of four, that’s $2,768 lower than what the average family in the U.S. would pay.[1]
To put this another way, Coloradans spend an average of 4.1% of their household income on hospital costs – the second lowest in the U.S. and substantially lower than the 5.9% that the average American family spends.
Not only that, but hospital costs are growing slower than those in other states.1 From 2015-20, Colorado hospital costs increased an average of 3.5% per year, compared to a U.S. average of 4.6%.
Patients have the right to know what their care will cost, and hospitals work hard to provide that information. Patients in Colorado can visit hospital websites to find a list of charges for services provided at that hospital and what their insurer has negotiated to pay. Not only is that the right thing to do for patients – it’s federal law that Colorado hospitals are complying with. Many hospitals have taken a step further to provide tailored out-of-pocket estimates based on a patient’s individual insurance coverage.
All of this comes at a time when many hospitals in Colorado are struggling to make ends meet. While the author cites data from 2018, we all know that much has changed for the health care industry through the COVID-19 pandemic and beyond. Looking at data we have through the first part of 2023, 60% of Colorado hospitals don’t have sustainable margins (national benchmark is 4%), and the majority of those hospitals have operating margins below zero. These issues are compounded by staffing shortages, high costs for supplies, and lower reimbursements from insurance companies. Colorado hospitals, big and small, face a real sustainability challenge.
More work remains to ensure that every patient in Colorado has access to affordable and excellent clinical care. Colorado hospitals are ready and willing partners in the work to address high health care costs, but it is inaccurate and misleading to claim that we have not already made substantial progress on saving Coloradans money on health care.