House Committee of Reference Report
Committee on Health & Human Services
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May 3, 2025
After consideration on the merits, the Committee recommends the following:
SB25-124 be amended as follows, and as so amended, be referred to the Committee of the Whole with favorable recommendation:
Page 1, Line 1Amend reengrossed bill, page 2, strike lines 9 through 24.
Page 1, Line 2Page 3, strike lines 1 through 4.
Page 1, Line 3Renumber succeeding C.R.S. sections accordingly.
Page 1, Line 4Page 3, strike lines 7 through 15 and substitute:
Page 1, Line 5(1) "340B drug" means "means a drug that:
Page 1, Line 6(a) Is a covered outpatient drug within the meaning set
Page 1, Line 7forth in 42 U.S.C. sec. 256b;
Page 1, Line 8(b) Has been subject to any offer for reduced prices by a
Page 1, Line 9manufacturer pursuant to 42 U.S.C. sec. 256b (a)(1); and
Page 1, Line 10(c) purchased by a 340B covered entity, as defined in 340B
Page 1, Line 11(a)(4) of the federal "Public Health Service Act", 42 U.S.C. sec.
Page 1, Line 12256b (a)(4). As used in this subsection (2)(c), a drug is considered
Page 1, Line 13"purchased" if it would have been purchased but for the
Page 1, Line 14restriction or limitation described in section 6-29-105.
Page 1, Line 15(2) "340B net revenue" means the difference between the
Page 1, Line 16aggregated market rate costs and the aggregated acquisition
Page 1, Line 17costs for 340B drugs.".
Page 1, Line 18Page 4, line 7, before "Denver" insert "an independent nonprofit
Page 1, Line 19hospital with fewer than fifty licensed beds,".
Page 1, Line 20Page 4, line 13, strike "profits." and substitute "net revenue.".
Page 1, Line 21Page 4, line 14, strike "profits" and substitute "net revenue".
Page 2, Line 1Page 4, strike line 16.
Page 2, Line 2Page 4, line 17, strike "compensation" and substitute
Page 2, Line 3"(a) Compensation".
Page 2, Line 4Page 5, line 2, strike the second "and".
Page 2, Line 5Page 5, line 3, strike "expenses." and substitute "expenses; and".
Page 2, Line 6Page 5, after line 3, insert:
Page 2, Line 7"(g) Salaries for the nonprofit hospital's chief executive
Page 2, Line 8officer, chief financial officer, chief administrative officer,
Page 2, Line 9chief operations officer, or any other senior executive officer
Page 2, Line 10at the vice president level or above.
Page 2, Line 11(2) (a) A nonprofit hospital that is a reporting hospital, as
Page 2, Line 12defined in section 25.5-1-701, must spend at least eighty percent
Page 2, Line 13of 340B net revenue on direct patient services or capital
Page 2, Line 14improvements that maintain or increase access to patient care
Page 2, Line 15for low-income populations.
Page 2, Line 16(b) For purposes of subsection (2)(a) of this section, direct
Page 2, Line 17patient services includes:
Page 2, Line 18(I) Charity care;
Page 2, Line 19(II) The difference between medicare and medicaid
Page 2, Line 20payments and the cost of care;
Page 2, Line 21(III) Financial support provided to a federally qualified
Page 2, Line 22health center, a critical access hospital as described in 42 U.S.C
Page 2, Line 23sec. 256b (a)(4)(N), or other 340B covered entity, as defined in
Page 2, Line 24340B (a)(4) of the federal "Public Health Service Act", 42 U.S.C.
Page 2, Line 25sec. 256b (a)(4). that is not a hospital, for the purpose of
Page 2, Line 26increasing access to care for low-income patients; and
Page 2, Line 27(IV) Other health-care products and services provided
Page 2, Line 28for low-income patients that are otherwise not reimbursed or
Page 2, Line 29reimbursed at below cost.".
Page 2, Line 30Page 5, strike lines 4 through 27.
Page 2, Line 31Page 6, strike lines 1 through 17 and substitute:
Page 2, Line 32"25.5-2.5-304. Hospital transparency reporting. (1) A
Page 2, Line 33nonprofit hospital that is a reporting hospital, as defined in
Page 2, Line 34section 25.5-1-701, shall include the following information in
Page 3, Line 1the annual report submitted pursuant to section 25.5-1-703(3):
Page 3, Line 2(a) The aggregate acquisition price for prescription drugs
Page 3, Line 3obtained under the 340B program;
Page 3, Line 4(b) The aggregated market price for drugs obtained under
Page 3, Line 5the 340B program and dispensed or administered to patients;
Page 3, Line 6(c) The number of transactions for prescription drugs
Page 3, Line 7described in subsection (1)(b) of this section;
Page 3, Line 8(d) The sum of the aggregated payments made to:
Page 3, Line 9(I) A contract pharmacy to dispense drugs obtained under
Page 3, Line 10the 340B program;
Page 3, Line 11(II) Any other entity, that is not a 340B covered entity as
Page 3, Line 12defined 340B (a)(4) of the federal "Public Health Services Act",
Page 3, Line 1342 U.S.C. sec. 256b (a)(4) or a contract pharmacy, for managing
Page 3, Line 14any aspect of the covered entity's 340B program.".
Page 3, Line 15Page 6, line 20, strike "wholesaler,".
Page 3, Line 16Page 6, line 22, strike "wholesaler,".
Page 3, Line 17Page 6, strike line 27.
Page 3, Line 18Page 7, strike lines 1 and 2 and substitute "a 340B covered entity, as
Page 3, Line 19defined in 42 U.S.C. sec. 256b (a)(4)."
Page 3, Line 20Page 7, strike lines 18 through 27.
Page 3, Line 21Page 8, strike lines 1 through 16.
Page 3, Line 22Renumber succeeding section accordingly.