Committee moves to replace hospital transformation program with simpler incentive framework

Senator Roberts introduced House Bill 14-32, saying the change will reduce duplicative programs and ease burdens on hospitals — particularly rural providers — that have struggled with the complexity and cost of the Hospital Transformation Program (HTP).

Megan Axelrod, representing the Colorado Hospital Association, said the HTP's administrative burden, opaque scoring and redistribution mechanisms threatened stability for low‑volume rural hospitals. "Rural hospitals in particular were facing potentially devastating financial penalties," Axelrod said, and she urged the committee to support a collaborative, more predictable incentive framework.

Josh Block, chief financial officer at the Department of Health Care Policy and Financing, testified that the bill reflects months of collaboration and would allow the department and hospitals to design a simpler, clearer program that rewards cost reduction and improved outcomes. He said the department supports the bill and that it provides statutory authority needed to continue program redesign work with stakeholders.

Senator Weissman moved the bill to the Committee of the Whole with a favorable recommendation; the clerk called the roll and the committee passed the motion unanimously. The sponsor asked that the bill be placed on the consent calendar.