The Colorado Sun reports a new financial analysis for the Colorado Business Group on Health puts medical profits at $2.8 billion in 2018, and critiques heavy concentration of hospital power for causing the state’s high prices
Colorado hospitals charge more, have higher costs and still report higher profit margins than any other state, according to a financial analysis of federal data presented Wednesday to the Colorado Business Group on Health, writes The Colorado Sun.
Both for-profit and nonprofit hospitals in Colorado have made strategic decisions to maximize revenue and profit, in large part by consolidating into a handful of powerful networks, said Thomas Nash, a health care financial consultant and former vice president of financial policy for the Colorado Hospital Association. The report employed analytical tools developed at the state Department of Health Care Policy and Financing.
When non-patient revenues such as investment income are figured in, Nash said, Colorado hospitals as a group reported a 15.6% profit margin, edging out Utah and California for the highest margins in the nation.