A Bill for an Act
Page 1, Line 101Concerning capital needs of rural and frontier hospitals,
Page 1, Line 102and, in connection therewith, directing the department
Page 1, Line 103of public health and environment to conduct a study
Page 1, Line 104and creating a task force to oversee the study.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)
The bill directs the department of public health and environment (department) to conduct a study of capital needs for rural and frontier hospitals throughout the state. Specifically, the study must measure the number of studied facilities that are not compliant with current and relevant design and building code standards for health-care facilities, identify the age of core facilities and any additions to them, and estimate costs for renovating or replacing facilities identified as having capital needs. By June 30, 2026, the department must complete the study and compile the results of the study into a report. The report must be presented to the respective health and human services committees of the senate and house of representatives.
The bill also creates the rural and frontier hospital capital needs study task force (task force). The task force is made up of the following 7 members who must be appointed on or before August 1, 2025:
- 3 members who work in rural or frontier hospitals;
- One member who is an architect professional;
- One member who is a construction contractor professional;
- One member who represents hospitals; and
- One member of the general public who lives in a rural area or frontier area.
The task force is responsible for developing and approving the parameters of the study and overseeing the study and the report. The task force may also facilitate contracting with a private sector consulting company to assist with data compilation, research, and outreach to rural and frontier hospitals. The task force is required to hold its first meeting by October 1, 2025, and meet at least quarterly after the first meeting until the study and the report are complete.
The study and the requirements imposed on the department, the task force, and any third-party entity in connection with the study are contingent upon money being available through gifts, grants, or donations for the purpose of conducting the study.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, add 25-3-132 as follows:
Page 2, Line 325-3-132. Rural and frontier hospital capital needs study -
Page 2, Line 4task force - creation - report - legislative declaration - definitions - repeal. (1) The general assembly finds and declares that:
Page 2, Line 5(a) Many of Colorado's rural and frontier hospitals
Page 2, Line 6operate in outdated facilities, and some facilities have not had
Page 2, Line 7any meaningful upgrades for decades;
Page 3, Line 1(b) These hospitals struggle with the increased
Page 3, Line 2maintenance costs necessary to keep facilities operational and
Page 3, Line 3are falling behind in being able to provide care that is consistent with current standards; and
Page 3, Line 4(c) An informal study conducted by Colorado Rural
Page 3, Line 5Futures, a group of chief executive officers of Colorado rural
Page 3, Line 6and frontier hospitals, identified approximately five hundred
Page 3, Line 7million dollars in needed upgrades for facilities of hospitals
Page 3, Line 8that were responsive to the informal study, but the capital
Page 3, Line 9needs of rural and frontier hospitals throughout the state could require an investment of as much as one billion dollars.
Page 3, Line 10(2) As used in this section, unless the context otherwise requires:
Page 3, Line 11(a) "Cash fund" means the rural and frontier hospital
Page 3, Line 12capital needs study cash fund created in subsection (6)(c)(I) of this section.
Page 3, Line 13(b) "Frontier area" means a county in the state that has
Page 3, Line 14a population density of six or fewer individuals per one square mile.
Page 3, Line 15(c) "Rural and frontier hospital" means a hospital that is
Page 3, Line 16licensed as a general or critical access hospital by the department and that operates in a rural area or a frontier area.
Page 3, Line 17(d) "Rural area" means an area listed as eligible for rural health funding by the federal office of rural health policy.
Page 3, Line 18(e) "Study" means the study required pursuant to this section.
Page 3, Line 19(f) "Task force" means the rural and frontier hospital
Page 4, Line 1capital needs study task force created in subsection (4)(a) of this section.
Page 4, Line 2(3) Subject to oversight by the task force, the department
Page 4, Line 3shall study or shall contract for a study to evaluate the
Page 4, Line 4capital needs of Colorado rural and frontier hospitals. The study must:
Page 4, Line 5(a) Objectively measure the number of studied facilities
Page 4, Line 6that are not code compliant in accordance with the current and
Page 4, Line 7relevant edition of the Facility Guidelines Institute "Guidelines for Design and Construction of Health Care Facilities";
Page 4, Line 8(b) Identify the age of core facilities and additions that have been made to such buildings;
Page 4, Line 9(c) Evaluate estimated project cost, including
Page 4, Line 10construction costs and relevant planning, design, and
Page 4, Line 11engineering costs, per square foot to renovate or replace facilities identified as having capital needs;
Page 4, Line 12(d) Make a reasonable estimate of the total cost of
Page 4, Line 13capital needs per facility and the aggregate total cost of capital needs for all facilities identified in the study; and
Page 4, Line 14(e) Review or evaluate any other matters concerning
Page 4, Line 15capital needs of rural and frontier hospitals that are requested by the task force.
Page 4, Line 16(4) (a) (I) There is created the rural and frontier hospital
Page 4, Line 17capital needs study task force for the purposes of developing
Page 4, Line 18and approving the parameters of the study and overseeing the study and the report of the results of the study.
Page 4, Line 19(II) In addition to the purpose of the task force set forth
Page 5, Line 1in subsection (4)(a)(I) of this section, the task force may
Page 5, Line 2facilitate contracting with a private sector consulting
Page 5, Line 3company to assist with data compilation, research, and
Page 5, Line 4outreach to rural and frontier hospitals. The task force may
Page 5, Line 5establish the frequency that the task force wants the company to report back to the task force.
Page 5, Line 6(b) (I) Subject to subsection (4)(b)(II) of this section, not
Page 5, Line 7later than August 1, 2025, members shall be appointed to the task force as follows:
Page 5, Line 8(A) The governor shall appoint three members; and
Page 5, Line 9(B) The president of the senate, the speaker of the house
Page 5, Line 10of representatives, the minority leader of the senate, and the minority leader of the house shall appoint one member each.
Page 5, Line 11(II) The composition of members appointed to the task force must be as follows:
Page 5, Line 12(A) Three members who work in rural or frontier hospitals;
Page 5, Line 13(B) One member who works as an architect professional;
Page 5, Line 14(C) One member who works as a construction contractor professional;
Page 5, Line 15(D) One member who represents hospitals; and
Page 5, Line 16(E) One member of the general public who lives in a rural area or frontier area.
Page 5, Line 17(c) The task force shall hold its first meeting on or before
Page 5, Line 18October 1, 2025, and meet at least quarterly after its first
Page 5, Line 19meeting until the report required by subsection (5) of this
Page 5, Line 20section is completed and may meet more frequently before that
Page 6, Line 1date if needed. Meetings of the task force may be in person or online.
Page 6, Line 2(5) Not later than June 30, 2026, the department shall
Page 6, Line 3complete the study and compile the results of the study into a
Page 6, Line 4report. The department shall present the report to the house of
Page 6, Line 5representatives health and human services committee and the
Page 6, Line 6senate health and human services committee, or their successor committees.
Page 6, Line 7(6) (a) It is the intent of the general assembly that the
Page 6, Line 8study be funded entirely by gifts, grants, and donations; that
Page 6, Line 9gifts, grants, and donations will be received throughout the
Page 6, Line 10course of the study; and that no additional general fund money
Page 6, Line 11be appropriated for the implementation of the study. The
Page 6, Line 12department and the task force may seek, accept, and expend
Page 6, Line 13gifts, grants, or donations from private or public sources for the purposes of this section.
Page 6, Line 14(b) The study is contingent on money being available to
Page 6, Line 15carry out the study. If money is not available for the task
Page 6, Line 16force, the department, or any other entity to carry out its
Page 6, Line 17duties required pursuant to this section, the task force, the
Page 6, Line 18department, or the entity is not required to carry out the
Page 6, Line 19duties. A contract with a third-party entity that will provide
Page 6, Line 20services related to the study must be contingent on money being available for that purpose.
Page 6, Line 21(c) (I) The rural and frontier hospital capital needs study
Page 6, Line 22cash fund is created in the state treasury. The cash fund
Page 6, Line 23consists of gifts, grants, and donations credited to the cash
Page 7, Line 1fund pursuant to subsection (6)(c)(II) of this section and any
Page 7, Line 2other money that the general assembly may appropriate or
Page 7, Line 3transfer to the fund. The state treasurer shall credit all
Page 7, Line 4interest and income derived from the deposit and investment of money in the cash fund to the cash fund.
Page 7, Line 5(II) All money received through gifts, grants, or
Page 7, Line 6donations is transmitted to the state treasurer who shall credit the money to the cash fund.
Page 7, Line 7(III) Money in the fund is continuously appropriated for
Page 7, Line 8the purposes of conducting the study in accordance with this section.
Page 7, Line 9(7) This section is repealed, effective July 1, 2027.
Page 7, Line 10SECTION 2. Safety clause. The general assembly finds,
Page 7, Line 11determines, and declares that this act is necessary for the immediate
Page 7, Line 12preservation of the public peace, health, or safety or for appropriations for
Page 7, Line 13the support and maintenance of the departments of the state and state institutions.