Denver voters will decide whether to increase the sales tax rate to raise an estimated $70 million annually for Denver Health, Colorado's sole safety net healthcare provider.
The Denver City Council on Monday approved putting a 0.34% sales tax increase on the Nov. 5 ballot to aid the health system, which has been hit with
If passed by voters, the total sales tax, which includes the state's 2.9% rate, would rise to 9.15%.
Denver Health CEO Donna Lynne told the council's Safety, Housing, Education and Homelessness Committee earlier this month that uncompensated care totaled $140 million last year. That was up from $120 million in 2022 and $87 million in 2021.
The health system is balancing its $1.4 billion budget by "juggling" and not investing in technology, facility maintenance, or employees, according to Lynne.
"Without additional reliable funding, Denver Health will not be able to continue to meet the growing needs of our community and will have to consider reductions in service, delays in accessing care, and continue to defer necessary maintenance to keep our facilities operational," Lynne said.
In January, she told another city council committee that migrants transported to Denver from the southern border contributed to the increase in uncompensated care. The Denver city and county government
Denver Health, which dates back to 1860, was split off in 1996 from the city and county of Denver with the transfer of healthcare programs, services, and facilities to the state of Colorado-created Denver Health and Hospital Authority.
Under an annual operating agreement with Denver, the health system was allocated $73 million in funding for fiscal 2024. Colorado lawmakers this year passed $5 million in one-time funding, the same supplemental payment provided to the health system last year.
Fitch Ratings and S&P Global Ratings cited Denver Health's improved operating performance when they affirmed its
The Denver Health and Hospital Authority last
