Recent data According to CMS, Colorado spent $4 billion less on hospital care in 2020 than the national average.
That year, Colorado’s average per capita health care cost was $3,163, compared to the US national average of $3,855. That means Coloradoans spend $692 (18%) less per person in hospital than the average American.
Change in average per capita health care costs between Colorado and the rest of the world.Source: Cha
Household spending on hospital care in Colorado was the second lowest in the nation, after Utah, accounting for an average of 4.1% of Colorado household income.
Percentage of household income spent on hospital care by state in 2020. Source: CHA
The data also reveal that hospital costs have risen more slowly than the national average, increasing at an annual rate of 3.5% over the past five years.
The Colorado Hospital Association (CHA) says the state’s strong and well-managed healthcare system is a key factor in its cost advantage over other states.
“[For] Tom Rennell, senior vice president of financial policy at CHA, said: “We are not hospitalizing people who should not be going back to the hospital. We are second best in the country for avoidable emergency department visits. Colorado is second best in the country if you don’t have to take it as a source, and I think this helps keep people who don’t need to be hospitalized and get care in the right place. Colorado is also a quality driver for us. We have good access to most services.”
Rennell said it’s a very difficult time for hospitals due to inflationary pressures and staffing shortages. From 2015, he tracked data through 2020, with his five-yearly report on hospital spending by CMS delayed by a year due to the pandemic. Rennell looks to the following set of data to clarify whether Colorado’s current health policy is effective in controlling costs.
federally funded 2020 Scorecard for State Health System PerformanceMeasuring a variety of factors including access, quality, outcomes and disparities, Colorado ranked 6th nationally.
