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Colorado Hospitals Struggle with Soaring Costs and Losses Due to the Migrant Crisis and Medicaid Changes

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Colorado hospitals are facing a dire financial crisis as they grapple with mounting losses and escalating costs of providing care to patients who are unable to pay, with the burden exacerbated by the influx of indigent migrants to the Denver area and changes in Medicaid enrollment policies.

The disastrous consequences of the Biden Administration's border policies and mismanagement are now hitting home, with hospitals like UCHealth reporting staggering losses and strained budgets.

UC Health Campus

UCHealth recently revealed a staggering $192 million increase in uncompensated and undercompensated care costs from 2022 to 2023, a substantial portion of which is attributed to the influx of thousands of migrants to the Denver region.

The end of pandemic-era Medicaid enrollment mandates has also played a significant role in driving up uncompensated costs, as hospitals struggle to cover the expenses of patients without insurance or the means to pay their medical bills.

The Colorado Hospital Association defines uncompensated care as the financial burden shouldered by hospitals when patients lack insurance or are unable to afford their medical expenses. This includes charity care provided to underserved populations and undercompensated care resulting from inadequate reimbursements from government health programs like Medicare and Medicaid.

UCHealth disclosed that the costs of uncompensated care for migrant patients alone totaled over $17 million from November through January, while the process of renewing or disenrolling Coloradans from Medicaid has added another $5 million in losses.

The financial strain has forced Denver Health, the state's sole safety net provider, to make drastic cuts, including reducing substance abuse and mental health beds and implementing pay cuts for staff members.

The repercussions of Medicaid disenrollment have been felt across the state, with approximately 400,000 Coloradans losing coverage since eligibility verification and renewal efforts began. Colorado Access, the state's largest Medicaid plan, has witnessed a significant increase in members losing coverage each month, signaling a troubling trend exacerbated by the Biden Administration's policies.

The situation is dire, with small hospitals bearing the brunt of rising uncompensated care costs, with a 19.5% increase in losses.

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The strain on resources is further compounded by the surge in demand for interpreters and language services, reflecting the growing complexity and challenges faced by healthcare providers in meeting the needs of diverse patient populations.

As Colorado hospitals grapple with financial turmoil and mounting losses, the Biden Administration's failed border policies and Medicaid changes have come under scrutiny for exacerbating the crisis.

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