On March 25, 2025, the Colorado State Legislature introduced Senate Bill 71, a significant piece of legislation aimed at enhancing transparency and accountability in the state's healthcare system, particularly concerning the 340B Drug Pricing Program. This bill mandates that hospital covered entities, which are hospitals certified under federal guidelines, report detailed financial information related to their participation in the 340B program.

The primary purpose of Senate Bill 71 is to ensure that hospitals disclose their annual savings from the 340B program, a federal initiative that allows eligible healthcare providers to purchase medications at reduced prices. The bill requires these hospitals to include in their annual reports not only the savings accrued but also how these savings are utilized, the costs associated with acquiring 340B drugs, and the total operating costs of the hospital, including expenses related to charity care.

This legislation comes in response to growing concerns about the transparency of how hospitals use the savings from the 340B program. Advocates argue that increased reporting will help ensure that the benefits of the program are passed on to patients, particularly those in underserved communities. However, some hospital representatives have expressed concerns about the potential administrative burden and the implications of public disclosure of sensitive financial information.

The debate surrounding Senate Bill 71 highlights a broader conversation about healthcare costs and access in Colorado. Proponents believe that the bill could lead to better resource allocation and improved patient care, while opponents worry it may lead to unintended consequences, such as reduced participation in the 340B program by hospitals that feel overwhelmed by the reporting requirements.

As the bill moves through the legislative process, its implications could resonate beyond hospital walls, potentially affecting healthcare costs for patients and the overall financial health of community hospitals. Stakeholders are closely watching how this legislation unfolds, as it may set a precedent for similar transparency measures in other states. The outcome of Senate Bill 71 could significantly influence the future of healthcare delivery and affordability in Colorado, making it a pivotal moment for both lawmakers and residents alike.