Denver Metro Hospitals Made $1.3 Billion In Profits In 2024, But Little Of That Came From Treating Patients

Denver metro hospitals earned nearly $1.3 billion in profits in 2024, but very little of that came from patient care, according to a newly released report.

Across the 28 hospitals in the seven-county Denver area, only about $53 million of 2024 profits came from treating patients. The bulk of earnings — more than $1.5 billion — came from non–patient-care revenue, including investments, tax support, philanthropy, and proceeds from a federal prescription drug program. These funds helped cover rising expenses and produced the much larger profit total.

The report, compiled by Minnesota health care analyst Allan Baumgarten, draws on federal Medicare Cost Reports. Baumgarten, who has analyzed Colorado’s hospital and insurance markets for nearly three decades, sells the report on his website.

The findings highlight stark differences in financial health among Colorado hospitals, ranging from large, profitable systems to smaller independent facilities operating on thin margins.

Outside the Denver area, Baumgarten reviewed 29 hospitals that collectively made about $50 million in patient-care profit in 2024. With far lower additional income — around $589 million — those hospitals ended the year with roughly $690 million in total profit.

Denver-area hospitals delivered far more care overall, generating $13.9 billion in patient-care revenue, compared with about $7.6 billion for hospitals outside the metro area.

The report also underscores the dominant position of UCHealth in Colorado. The system brought in more than $6.7 billion in patient-care revenue statewide — more than double its nearest competitor — and earned $138 million in patient-care profit. UCHealth’s total statewide profit reached $1.2 billion, with $689 million of that coming from its Denver-area hospitals, more than half of all metro-area hospital profits.

Several major Denver-area systems operated at a loss in 2024: AdventHealth lost $68 million, Intermountain Health lost $155 million, and Denver Health lost about $53 million.

In contrast, HCA HealthONE hospitals — including Sky Ridge and Presbyterian St. Luke’s — posted the second-highest profits in the region at $617 million. Unlike Colorado’s major nonprofit systems, HealthONE is for-profit and pays taxes on its earnings.

Children’s Hospital Colorado facilities in Aurora and Colorado Springs lost more than $120 million on patient care but ended the year with more than $90 million in total profit thanks to significant philanthropic and other revenue sources.

Outside the metro area, Banner Health was the only major system to lose money, reporting a $20 million loss. Banner’s McKee Medical Center — which recently closed its emergency room as it transitions into a specialty hospital — accounted for $17 million of that deficit.

Baumgarten said the McKee transition illustrates a broader industry shift. Hospitals increasingly seek to build outpatient facilities, which are less expensive to operate and more profitable. But that shift requires substantial investment — a challenge for small, rural hospitals not backed by large health systems.

“The successful hospitals are the ones making the shift to more outpatient facilities,” Baumgarten said. “That’s the challenge to small, rural hospitals that are not part of a larger system because it requires capital.”

Source: Colorado Sun