New legislation proposed in the Colorado House of Representatives would require nonprofit hospitals to spend 3 percent of their revenue on community benefit, with the target eventually rising to 5 percent, The Denver Post reported March 20.
Nonprofit hospitals are already required to spend money on community benefits. In addition to setting a revenue percentage, the bill would redefine community benefit spending to include behavioral healthcare and community-based healthcare. Hospitals would also no longer be able to claim free and discounted care or programs targeting health behaviors.
According to 2021 data, of the 43 nonprofit hospitals with data on revenue and community benefits, 23 would meet the 3 percent spending threshold and 17 would clear the 5 percent goal.
The Colorado Hospital Association believes only two hospitals would meet the threshold under the new definitions and require $491 million in new spending.
Read the full text of Colorado House Bill 23-1243 here.