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Committee unanimously advances bill to extend hospital cooperative purchasing to rural nonprofits
Summary
The House Health and Human Services Committee voted unanimously to advance Senate Bill 78 (COPA 2), which would allow independent rural nonprofit hospitals to form collaborative agreements for joint purchasing and ancillary services, to the Committee of the Whole.
The House Health and Human Services Committee unanimously advanced Senate Bill 78, dubbed COPA 2, to the Committee of the Whole after testimony from rural hospital representatives and state staff.
Senate Bill 78 amends the original COPA statute passed in 2023 to allow additional independent rural nonprofit hospitals to enter collaborative agreements with county public hospitals and hospitals formed by health service districts. The bill would permit joint purchasing of pharmaceutical drugs, medical supplies and equipment and allow collaborative delivery of ancillary or specialty services. The measure requires participating hospitals to file a joint‑venture application with the Colorado Department of Health Care Policy and Financing (HCPF) and the Colorado Attorney General; both agencies would have 60 days to review, with the Attorney General allowed an additional 45 days. If neither agency responds within the initial 60‑day window, the application would be deemed approved.
"This law allows rural and frontier hospitals to collectively work together to drive down costs and to improve quality and access for the patients and communities we serve," said Kevin Stansbridge, who testified for the Colorado Rural Futures Group and described existing and prospective cooperative programs.
Sponsor Representative Lukens told the committee the amendment replaces a bed‑count threshold and instead excludes hospitals that are part of health systems composed of three or more hospitals, opening participation to more independent rural hospitals. "The intent of this bill is to support the hospitals that are not the big groups that we see on the Front Range," Lukens said.
Committee members asked about how the expansion differs from COPA 1 and about cost savings. Witness Kevin Stansbridge said a staffing cooperative has reduced his hospital’s agency staffing costs by about 20% on a per‑person basis; other savings will vary by program and participant. Austin Woznick of HCPF was present to answer program‑operation questions.
A motion to move Senate Bill 78 was seconded by Representative Bradley and the committee approved the bill on a roll call vote recorded as 12‑0 with one member excused. The chair announced the bill proceeds to the Committee of the Whole.
Supporters told the committee they had worked with the Attorney General’s office and HCPF to craft oversight and protections. Testimony emphasized rural hospitals’ financial fragility and the potential for cooperative purchasing and shared services to lower costs and preserve local access to care.
No amendments were adopted in committee. Sponsors urged a yes vote to preserve rural services and avoid hospital closures.
The committee report shows Senate Bill 78 will proceed to the Committee of the Whole for further consideration.
