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Colorado hospitals face financial strain with 340B program amid rising negative margins

March 25, 2025 | Introduced Bills, Senate Bills, 2025 Bills, Colorado Legislation Bills, Colorado


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Colorado hospitals face financial strain with 340B program amid rising negative margins
Colorado's Senate Bill 71 aims to bolster the financial stability of hospitals and federally qualified health centers (FQHCs) struggling under unsustainable margins. Introduced on March 25, 2025, the bill addresses the pressing issue of negative operating margins faced by many healthcare facilities in the state, particularly those participating in the 340B Drug Pricing Program.

The bill highlights that a staggering 65% of Colorado's FQHCs currently operate at a loss, which threatens their ability to provide essential services. These centers serve as primary care homes for one in seven Coloradans, with a significant portion of their patients living below the federal poverty line or uninsured. The 340B program allows these facilities to offer critical services, such as direct prescription drug discounts and subsidized care for uninsured patients, but recent losses in program savings—estimated at $4.3 million over the past two years—have raised alarms.

Key provisions of Senate Bill 71 include measures to enhance funding and support for these healthcare providers, ensuring they can continue to meet community needs, including opioid treatment and mobile health services. The bill has sparked debates among lawmakers, with proponents arguing that it is essential for maintaining healthcare access for vulnerable populations, while opponents express concerns about the long-term sustainability of such funding models.

The implications of this legislation are significant. If passed, it could stabilize healthcare access for low-income residents and reduce the financial strain on hospitals and FQHCs. However, critics warn that without a comprehensive strategy to address the root causes of financial instability, the bill may only serve as a temporary fix.

As discussions continue, the future of Senate Bill 71 remains uncertain, but its potential to reshape healthcare delivery in Colorado is undeniable. Lawmakers are expected to vote on the bill in the coming weeks, with advocates urging swift action to protect the state's most vulnerable populations.

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Scribe from Workplace AI
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