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Denver Health sees costs for covering poor soar in '08

By Joyzelle Davis, Rocky Mountain News (Contact)

Published January 5, 2009 at 12:05 a.m.

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Denver Health Medical Center in 2008 provided about $315 million in care for the uninsured, a record for the city's primary "safety-net" hospital for the poor.

The amount is 14 percent more than the $276 million provided in 2007.

The surge comes as the increasing numbers of unemployed and uninsured people turn to hospitals because emergency rooms are legally required to see all patients who enter their doors, regardless of their ability to pay.

Emergency department admissions at the hospital soared 17 percent in November, the most recent month of data available, from a year earlier.

"The economy, as you know, is worsening, and it's showing up" in the emergency room, said Michael O'Malley, assistant chief financial officer at Denver Health.

The hospital expects the trend to continue. It anticipates providing nearly $350 million in "unsponsored" care this year.

The hospital is implementing cost-

cutting to help cover the funding shortfall, O'Malley said, adding that the measures are all internal and won't affect patient care.

Some 25 percent of all Denver residents, or about 160,000 people, receive their health care at the hospital.

The sputtering economy may not be solely to blame for the surge of uninsured patients at Denver Health.

Colorado continues to rank among the fastest-growing states in the nation, and University of Colorado Hospital's move to Aurora last year left Denver Health as the only safety-net hospital in the city.

Some patients work for companies that have scaled back coverage, leaving workers with high deductibles that make them reluctant to seek preventive medical care, said Dede de Percin, executive director of the Colorado Consumer Health Initiative.

"This is not at all surprising to see as more people are losing their jobs," she said. "While COBRA is there, it's expensive and without a job it's hard to pay for. And among employers, you're seeing the thinning of benefits."

COBRA is a federal program that extends group health benefits to former employees, although they generally pay the entire premium.

Nationwide, uncompensated care was up 8 percent from July to September compared with the same period last year, according to a report released last month by the American Hospital Association. At the same time, the number of patients seeking elective procedures plummeted 30 percent, further squeezing hospital budgets.

What exactly comprises "unsponsored" medical care is somewhat murky, although that's set to change with new regulations instituted by the Internal Revenue Service that take effect this year.

Until now, nonprofit providers could mix charity care, bad debt and uncompensated care.

All nonprofit hospitals in 2009 will have to provide their finances and community benefits in much greater detail to retain their special tax status.

Denver Health unsponsored care

* 2000 - $175 million

* 2001 - $200 million

* 2002 - $210 million

* 2003 - $240 million

* 2004 - $290 million

* 2005 - $285 million

* 2006 - $280 million

* 2007 - $276 million

* 2008 - $315 million

* 2009 - $350 million (projected)

Comments

  • January 5, 2009

    9:05 a.m.

    Suggest removal

    gary writes:

    A bunch of illegals getting free health care???

    No of course not.....illegals do not do that!!