Denver voters will choose in November whether to approve a sales tax increase for Denver Health, which has struggled financially because of rising uncompensated care, among other issues, The Colorado Sun reported Oct. 21.
Here are five things to know about Ballot Issue 2Q:
1. It would increase the Denver sales tax rate by 0.34% and provide up to $70 million annually for Denver Health.
2. The system's uncompensated care loss for 2024 is expected to hit $155 million, compared to 2020's figure of $60 million, Denver Health CEO Donna Lynne, DrPH, said.
3. Half of the system's uncompensated care is tied to Medicare and Medicaid patients. The other half is tied to uninsured patients, Dr. Lynne said. She added that Medicaid payment rates are only increasing by 2% next year, according to the Sun.
"That's not consistent with inflation; it's certainly not consistent with medical inflation," Dr. Lynne told the Sun. "And it's not what we can pay our employees in terms of their salary because other systems are able to pay much more."
4. The system expects to lose around $8.5 million this year and had about two months cash on hand as of June, the Sun reported.
5. If the measure is not passed, Denver Health will consider service cuts at its main hospital and clinics, Dr. Lynne said. Certain programs, such as its initiative to provide unhoused residents with housing while seeking treatment, may not be sustainable without additional funding, she said.
"If it doesn’t pass, we will shrink services. We will cut services," Dr. Lynne told the Sun. "We’ll have to get smaller to get better."
"I'd rather be a little smaller and pay our employees what they deserve. … I would rather be smaller and better than do what we do now."