Colorado General Assembly passes Senate Bill 78 to boost rural hospital cooperation

In a recent meeting of the Colorado State Legislature's House Health & Human Services Committee, lawmakers discussed Senate Bill 78, also known as the Bridal Hospital Cooperation Act 2 (COPPA 2). This legislation aims to empower small rural nonprofit hospitals to collaborate and enhance their purchasing power for essential medical supplies and services.

The bill builds on the success of a previous initiative, Senate Bill 298, which allowed rural and frontier hospitals to band together for better pricing on pharmaceuticals and medical supplies. COPPA 2 expands this opportunity to include small nonprofit hospitals with fewer than 50 beds, enabling them to join forces with other rural public and county hospitals. This collaborative approach is expected to significantly reduce costs and improve healthcare access for communities in need.

During the meeting, Representative Lukens emphasized the importance of this bill, stating that it would support rural hospitals struggling to maintain services due to financial constraints. By allowing these hospitals to enter into cooperative agreements, the legislation aims to make healthcare more affordable for residents seeking care in rural areas.

The committee also discussed amendments to the bill that removed the bed limit, allowing more hospitals to participate. This change was made to ensure that hospitals with slightly more than 50 beds could also benefit from the program, addressing concerns that the previous restriction excluded potential participants.

Support for COPPA 2 was echoed by Kevin Stansbury, CEO of Lincoln Health, who testified about the challenges faced by rural hospitals. He highlighted that these facilities often serve older, poorer, and sicker populations, making cost-effective solutions crucial for their survival. Stansbury noted that the bill would enable independent hospitals to work together, ultimately enhancing the quality of care for their communities.

As the committee moves forward, the passage of Senate Bill 78 could mark a significant step toward strengthening healthcare services in Colorado's rural areas. By fostering collaboration among hospitals, the state aims to ensure that residents have access to affordable and quality healthcare, regardless of their location.