Denver Health has been struggling financially since 2022, and its leadership is asking voters in the Nov. 5 election to commit to funding it long-term through Ballot Issue 2Q.
The system lost about $35 million in 2022 and posted a $17 million profit last year, but only after receiving one-time donations. Denver Health projects it will lose $10 million this year.
CEO Donna Lynne attributed most of the shortfall to an increase in uninsured patients needing care and flat funding from the city of Denver. She said that next year, the system projects Denver residents will need about $124 million in care that Denver Health won’t get paid for.
What would 2Q do if passed?
The ballot issue asks voters if they want to commit to raising the sales tax in the city, with the proceeds funding Denver Health. The question would forbid the city from reducing its regular annual funding for the health system if the ballot issue passes.
If voters approve the measure, it would raise the sales tax by 0.34 percentage points, adding 34 cents to the cost of a $100 purchase. Denver’s effective sales tax rate would increase from 8.81% to 9.15%, though the rate could rise more if voters also approve Ballot Issue 2R, a proposed dedicated tax for affordable housing initiatives.
The campaign in favor of 2Q estimated it would raise about $70 million annually for Denver Health.
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Where would the money go?
Denver Health would have to use the money on five priority areas: emergency and trauma care, primary care, mental health care; addiction treatment and recovery, and pediatric care. Supporters proposed a combination of uses that would plug existing budget holes and add services, including primary care in the northeast part of the city and behavioral health providers in school clinics.
What do supporters say?
Supporters say the new tax would provide a crucial new source of sustainable funding. They point out that other safety-net hospitals receive more support from their cities and counties, while Denver’s annual contribution has remained at about $31 million, even as the cost of caring for uninsured people has increased. Supporters say that without more stable funding, the system would have to make significant cutbacks in service.
What do opponents say?
Opponents argue Denver residents already pay enough in sales taxes, and a new one would raise the cost of living. Some argue that other counties should contribute toward funding Denver Health, too, because their uninsured residents also receive care there. Some don’t want to pass a new tax that doesn’t fully solve Denver Health’s financial problems.
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