DENVER — Denver Health, Colorado's safety net hospital, said it's facing a financial crisis. The hospital is required by law to treat anyone who comes into the hospital for treatment, regardless of their financial status or where they're from.
Last year, the hospital's uncompensated care costs were $136 million. More than 65% of Denver Health's patients are either covered by Medicaid or are uninsured, according to the documents.
To offset the debt, the hospital is working with Denver city councilors on a November ballot initiative that would ask Denver voters to approve a .34% sales tax increase. The increase would bump Denver's sale tax to over 9%. The sales tax collection would be capped at $70 million a year.
Earlier this year, CEO Donna Lynne put pressure on state and federal leaders for more funding to pay for the uncompensated care. In March, state legislators fast-tracked $5 million to the hospital when state health care leaders warned that the safety net hospital was nearing a financial "death spiral."
Full interview with Donna Lynne:
Lynne said a sales tax is a way to ensure people from all over the state are paying for a solution. "One of the nice things about the sales tax, is that people who live outside of Denver do come to Denver, whether it's to go to a Rockies game or Broncos game, or, you know, other tourism," Lynne said. "So, we would be able to have that sales tax spread across more than just the residents of Denver."
A city council committee advanced the tax proposal Wednesday. The proposal still needs full council approve later this month to get on the ballot.
In addition to the ballot initiative, Lynne said she'll continue to push for state and federal funding. "There is a possibility that there would have to be service reductions, if we are not successful in all of those fronts," Lynne said.
SUGGESTED VIDEOS: Next with Kyle Clark