(SOUTHERN COLORADO) — Another blow to rural hospitals in southern Colorado is lurking as the state may make some hospitals pay back millions of dollars because of a settlement.
La Junta Mayor Joe Ayala tells FOX21 News it could not have come at a worse time for the Arkansas Valley Regional Medical Center.
“We lost our obstetrics unit earlier this year in April,” Ayala said. “We just did a 5% reduction in staff across the board.”
Right now, hospitals on the list owe $59.7 million back to the state, with the Arkansas Valley Regional Medical Center owing $2.6 million.
It’s because a court ruled earlier this year that two UCHealth hospitals were private and not public. Because of this misclassification, the state now needs to take funding from other hospitals to pay UCHealth back.
State Senator Rob Pelton, who represents southeastern Colorado, says he has been in contact with hospitals in his area.
“Some of them, they have healthy enough reserves that they don’t think it’s going to be much of an issue,” Pelton said. “There’s others that, I mean, most of these rural hospitals run in the red.”
Pelton is part of the state’s rural caucus, which warns if these hospitals paid back funds, it could force many to shut their doors.
“Their standard of living goes down and it makes it tough,” Pelton said. “We just can’t replace those jobs out here in rural Colorado.”
Ayala is asking for more answers from the state as to how this decision was reached along with the figures that have been reported.
“Show us the math, show us how you’re coming up with these figures, and then after that, find out ways we can work together,” Ayala said. “We’re not enemies here, we want to work with you.”
One of the potential solutions would be an appeal, with the next being a request for help from state lawmakers, with a potential special session.
“I and the other rural legislators will get our heads together and see what we can do to help them,” Pelton said.
While the timeline for when these payments could begin is unclear, the clock is ticking to find a solution.
“It’s not adding up right now, and it’s at a time when it’s scaring a lot of people,” Ayala said.
The State Department of Health Care Policy and Financing has said it will appeal the ruling.
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