For years, we’ve warned Colorado residents about the dangers of government overreach in healthcare resulting in hospitals closing.
The combination of Obamacare and the implementation of the Colorado Public Option has created a perfect storm of financial stress, especially for Colorado’s rural hospitals. These healthcare facilities, which have faced financial challenges for years, are now in even more precarious positions.
Unfortunately, we’re seeing our warnings come true. Hospitals across the state, particularly in rural areas, are now facing the possibility of closure due to increasing financial strain. If you live in one of these areas, it’s important to understand what’s happening and what it could mean for your healthcare access in the future.
Learn More: Colorado Introduces a New “Public Option.” We’re Skeptical.
Rural Hospitals Are Struggling Nationwide
This isn’t just a Colorado problem.
A report from the Center for Healthcare Quality and Payment Reform (CHQPR) found that more than 700 rural hospitals across the U.S.—over 30% of all rural hospitals—are at risk of closing because of severe financial difficulties. Over the past decade, more than 100 hospitals nationwide have already shut their doors, and many others are on the brink of doing the same.
According to the report, over half of the 700 hospitals designated “at risk” are in immediate danger of closing. The financial problems have been worsened by recent healthcare policies and the long-lasting effects of the COVID-19 pandemic.
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Colorado’s At-Risk Hospitals
Colorado is not immune to this crisis. Seven rural hospitals in the state are currently listed as being in danger of closing due to financial difficulties. They include:
- Delta County Memorial Hospital
- Estes Park Medical Center
- Pioneers Medical Center in Meeker
- Spanish Peaks Regional Health Center in Walsenburg
- St. Vincent General Hospital District in Leadville
- Vail Health Hospital
- Weisbrod Memorial County Hospital in Eads
The situation is serious. If these hospitals close or merge with larger health systems, you may face longer wait times, longer drives to get to the nearest hospital, and possibly fewer healthcare services in your community.
Disputed Findings
Some of these hospitals are pushing back against the CHQPR report.
Specifically, Vail Health and Delta County Memorial Hospital both dispute the claim that they’re at risk of closing, insisting they have ample capital and are in no immediate danger.
Similarly, Spanish Peaks Regional Health Center in Walsenburg has stated they are in “no immediate danger” of closing, although their financial situation remains a concern.
These hospitals may be hanging on for now, but the financial pressures they’re under are real, and we’ve seen hospitals in similar positions close their doors unexpectedly in the past.
Why Is This Happening?
The financial pressure on rural hospitals isn’t new, but it has been greatly accelerated by COVID-19.
Many of these hospitals were already operating with razor-thin margins.
The pandemic led to a reduction in elective procedures and regular outpatient visits, cutting deeply into their revenues. At the same time, operating costs have risen, particularly for staffing and PPE.
However, the introduction of the Colorado Public Option has compounded the problem. By pushing hospitals to accept lower payments for services, the public option limits the revenue hospitals can collect.
Rural hospitals, which often rely on higher reimbursements from private insurers to stay afloat, are hit hardest by these policies.
In smaller communities, there are fewer patients, meaning rural hospitals have less volume to spread their fixed costs across. When reimbursements decrease, it becomes nearly impossible for them to cover their operating expenses, let alone invest in future improvements.
Mergers on the Horizon?
Some of these hospitals may be forced to merge with larger health systems to survive.
While mergers can provide much-needed financial support, they also tend to result in reduced services or hospital closures in rural communities. Larger systems often consolidate resources and close down less profitable facilities, leaving residents with fewer local healthcare options.
What This Means for You
If you live in a rural area or rely on one of these at-risk hospitals, this could have a direct impact on your healthcare.
Closures or mergers could mean:
- Longer travel distances for emergency or routine care.
- Reduced access to specialized services or procedures.
- Overburdened remaining hospitals, leading to longer wait times and reduced quality of care.
We’ve seen it happen before, and the warning signs are clear: the policies being implemented today are putting rural healthcare systems at greater risk. You may think it won’t affect you—but if your local hospital closes, the consequences will be real and immediate.
What Can You Do?
If you’re concerned about how these changes could affect your healthcare, it’s important to explore your options now.
One of the best things you can do is take more personal, direct control of your health coverage. Whether through a traditional health insurance plan or an alternative like a health sharing plan, make sure you have access to care no matter what happens with your local hospital.
It’s also a good time to evaluate your healthcare coverage to ensure you’re not overpaying for plans that might not give you the protection you need. With the instability in the healthcare system, especially in rural areas, getting professional advice on your healthcare options can make a huge difference.
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Final Thoughts: Don’t Wait to Protect Your Health
The writing is on the wall for rural hospitals in Colorado.
The combination of government policies, shrinking revenues, and rising costs means many of these facilities are hanging on by a thread. If you’re concerned about how a hospital closure could impact you and your family, now is the time to act.
For free, personalized help with your health coverage and to explore alternatives that could protect you in the face of hospital closures, contact a ColoHealth Personal Benefits Manager today.
You’ll get expert guidance tailored to your situation, so you can have peace of mind knowing your healthcare is covered no matter what happens in the future.
For Further Reading:
The mission of Colohealth resonates deeply with Mark Smith, as it aligns perfectly with his personal beliefs and values…
