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Committee sends rural hospital capital‑needs study to Finance after sponsors promise it will rely on gifts and grants

2518430 · March 4, 2025
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Summary

Lawmakers approved creation of a task force to inventory capital needs at Colorado’s rural and frontier hospitals and estimate renovation and replacement costs. Sponsors said the group will be funded by gifts, grants and donations and will not draw on state tax dollars.

The House Health & Human Services Committee approved House Bill 25-1223, a proposal to create a task force that will study capital needs at Colorado’s rural and frontier hospitals and estimate renovation and replacement costs.

Co‑prime sponsors Representative Selena Johnson and Representative Rebecca Lukens said the task force will assemble rural leaders, an architect and construction professional, hospital representatives and a rural resident to map facility ages and code compliance, estimate renovation/replacement costs and recommend funding and staffing strategies. Sponsors emphasized that the study will be funded by gifts, grants and donations rather than state general funds; committee amendments added explicit language preventing use of taxpayer general or cash funds and required the department not to implement the task force until external funds are secured.

Supporters included the Associated General Contractors (AGC), which told lawmakers that public‑sector experience with long‑term capital stock suggests many rural hospitals are aging and under‑maintained. Michael Gifford of AGC said a reliable inventory would be the first step to developing a longer‑term funding plan comparable to the state’s controlled‑maintenance budgeting for public buildings.

Committee members asked about downstream effects if the task force finds many hospitals out of code or in need of costly renovations. Sponsors reiterated that the effort is an information study designed to produce a realistic estimate and recommended strategies; they said the task force will identify funding sources, not automatically order corrective action. The panel adopted technical amendments and sent the bill to the Committee on Finance.

Outcome: Motion to refer HB25‑1223 to Finance passed; recorded committee vote was 11‑1 with one excused.

Why it matters: Rural hospitals across Colorado have described tight operating margins and thin capital reserves. Sponsors said a transparent inventory and cost estimate are necessary to pursue philanthropy, federal grants and other capital tools.