Denver voters will decide in November whether to approve a sales tax increase that would provide a funding boost to Denver Health, The Denver Gazette reported June 24.
If the 0.34% tax rate increase is approved by voters, the safety-net hospital would be able to spend the additional funds in four areas: emergency and trauma care, mental healthcare, primary care and pediatric care.
The increase would provide up to $70 million annually for the system, according to the report. Denver Health has a $1.4 billion budget.
Rising uncompensated care costs have been a major challenge for the system. Denver Health lost $60 million from uncompensated care in 2020, which doubled to $120 million in 2022. Uncompensated care costs reached $136 million in 2023, with $35 million of that coming from patients who live outside the city.
Denver Health has 78 psychiatric, mental health and substance abuse beds but only operates 50 of them, according to the report. Denver Health CEO Donna Lynne, DrPH, said funds generated from the sales tax will help the system open the other 28 beds permanently.