Denver’s 'safety net' hospital in 'critical' condition due to influx of uninsured migrants
Denver Health treats everyone who walks through its doors regardless of insurance, and is partially funded by taxpayers, however, the hospital's CEO is raising the alarm about its $136 million deficit as migrant crisis worsens.
Providing treatment to undocumented patients is overwhelming the resources of Denver Health, which is legally required to care for patients regardless of their ability to pay. “Overall, these patients don’t have medical insurance,” said Dr. Taylor McCormick, associate director of Pediatrics Emergency Medicine for the hospital. “Denver Health is eating the cost for many of these visits.”
Although the Denver Department of Public Health and Environment performs most of the city’s health duties, Denver Health operates as the “safety net” hospital, which treats everyone who walks through the doors regardless of insurance, and consequently is partially funded by Denver taxpayers.
In 2020, the hospital had about $60 million in uncompensated care. Within two years that number doubled to $120 million, and last year it increased to $136 million, with a quarter of that cost coming from non-Denver, Colorado residents. Denver Health also is experiencing record volumes among patients younger than 18, with a 10% to 15% increase in demand in pediatric care.
“That’s a combination of typical childhood illnesses but also illnesses that you see when people live in close proximity, so people traveling by bus for a long time, people living in shelters, people tend to share those illnesses more commonly,” said Dr. Steven Federico, chief government and community affairs officer for Denver Health.
Many of these new patients have underlying medical conditions or have run out of or no longer have prescriptions, McCormick said. A large number also suffer from diarrhea, rashes and skin conditions. “It’s not surprising when they get to Denver that there are severe and acute health-care needs,” Frederico said.
The spike in demand is forcing Denver Health to make tough decisions. The hospital closed 15 beds, reduced raises and postponed renovations after losing $2 million last year.
“What I think is not being said is that Denver Health is at a critical, critical point and that we need to take this up in 2024,” CEO Donna Lynne recently told the Denver City Council. “Because our costs exceed our revenues, we are turning down patients every day, particularly in the area of mental health and substance abuse.”
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Eight thousand migrants from Central America accounted for approximately 20,000 visits in 2023. The state and federal governments aren’t reimbursing the hospital, which spent $136 million on patients who didn’t pay. Denver Health asked the Federal Emergency Management Agency to provide funds for immigrants’ medical costs.
“While I have tremendous compassion for what’s going on, it’s heartbreaking,” Lynne said. It’s going to break Denver Health.”