RBC | On Saturday, June 3, Governor Polis signed SB23-298 into law. This legislation, sponsored by Moffat and Rio Blanco counties’ State Senator Dylan Roberts, will provide critical support to rural and frontier hospitals by cutting red tape and enabling them to form collaborative agreements to expand their purchasing power.
Currently, many of Colorado’s 43 rural and frontier hospitals are operating at financial deficits ranging from $250,000 – $500,000. Because most rural and frontier hospitals are located roughly 80 miles apart, if just one of these hospitals were to close its doors, patients would be forced to travel 160 miles for their healthcare. SB23-298 aims to prevent closures by offering rural hospitals an additional way to save costs.
With this legislation, rural hospitals will be able to enter into joint ventures to purchase medical supplies and equipment, allowing them to offer more specialized care, while reducing expenses and maintaining financial sustainability. Right now, independent hospitals are unable to enter into collaborative agreements because of antitrust laws. SB23-298 removes this roadblock by creating a process by which the Colorado Department of Health Care Policy & Financing (HCPF) and the Attorney General’s office can approve joint ventures between rural hospitals.
“I sponsored this legislation because I heard from hospitals like Memorial Regional Hospital in Craig that they were struggling to meet patient needs while remaining financially viable,” said Roberts. “Rural Coloradans deserve the same quality of and access to care as individuals living in urban areas, and it would be devastating to the health and well-being of our communities if any one of these hospitals had to close their doors. This new law will cut red tape and help level the playing field for our rural health care providers by allowing them to collaborate to increase their purchasing power and save people money.”
Several hospitals in Northwest Colorado will be eligible to use this new law, including Memorial Hospital in Craig and the Rangely District Hospital.
“Senator Roberts was instrumental in getting this important legislation passed. Rural hospitals across the state are struggling to find ways to maintain financial viability while remaining independent,” said Jennifer Riley, CEO of Memorial Regional Hospital in Craig. “This bill enables us to work together in ways that will benefit the hospitals and the patients. Senator Roberts listened to me and my rural colleagues and got this bill across the finish line.”
Similar legislation has already been passed and successfully implemented in 21 other states, such as Washington and Nebraska. As a result, these states have seen rural hospitals reinvest hundreds of thousands of dollars in healthcare and increase patient outcomes.
PRESS RELEASE | Submitted to the Herald Times
