FINANCIAL STRESS FROM MIGRANT CRISIS THREATENS TO BREAK DENVER HOSPITAL SYSTEM, CEO SAYS

National Review

 

Financial Stress from Migrant Crisis Threatens to ‘Break’ Denver Hospital System, CEO Says

By BRITTANY BERNSTEIN

January 18, 2024 6:12 PM

 

A hospital system in Denver warned local lawmakers this week that it is on the brink of collapse due to financial pressures created by the migrant crisis.

 

Denver Health recorded some 20,000 visits from 8,000 Central American migrants in 2023 for everything from dental emergencies to mental health counseling, according to the Denver Post.

 

Denver estimates more than 36,000 illegal immigrants, most of whom are Venezuelan, have arrived in the city since December 2022. Roughly half of those migrants have decided to put down roots in the city.

 

The influx created a $2 million loss for the hospital system last year, following a $35 million loss the year before. The system’s saving grace in 2023 was a $20 million boost it received from the state, Kaiser Permanente Colorado, and private donors, the Denver Post reported.

 

Last year’s losses led the hospital to close 15 beds that would otherwise be used for patients needing psychiatric or addiction treatment and to reduce raises and postpone renovations.

 

“If we were to have another year like [2022], it would have dire consequences,” Steve Federico, chief of government and community affairs for Denver Health, told the paper.

 

The hospital lost $136 million in 2023 because of patients who didn’t pay, including millions of dollars on care for illegal immigrants that the state and federal governments have declined to reimburse.

 

Denver Health CEO Donna Lynne appealed to Denver council members this week to increase the city’s financial support for the hospital system; the city already gives Denver Health approximately $30.8 million each year to cover the cost of patients who can’t pay.

 

“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,” she said. “Because our costs exceed our revenues, we are turning down patients every day, particularly in the area of mental health and substance abuse.”

 

“While I have tremendous compassion for what’s going on, it’s heartbreaking, it’s going to break Denver Health,” she said.

 

City councilwoman Amanda Sawyer said the city can’t cover the cost for patients who don’t pay since not all of the system’s patients live in the city.

 

However, a proposed bill in the statehouse would see the state give Denver Health $5 million each year.

 

“I think the city of Denver should do more, but the state also has to step in,” the bill’s sponsor, state representative Judy Amabile, told the Denver Post. “Denver Health is the safety net provider for the whole state. They’re taking patients no one else will take.”