Colorado lawmakers will not move forward with a proposed $50 million reduction to a Medicaid program that helps hospitals cover the indirect costs of training medical residents, The Colorado Sun reported March 12.
On March 11, members of the state’s Joint Budget Committee voted unanimously to abandon the cuts. The proposal, put forward by the Colorado Department of Health Care Policy and Financing, would have reduced funding for the state’s Medicaid indirect medical education program, which helps teaching hospitals offset costs associated with training physicians, such as maintaining training infrastructure and reduced clinical productivity when physicians supervise residents.
The cuts would have primarily affected hospitals within large systems, with UCHealth’s University of Colorado Hospital and Children’s Hospital Colorado, both based in Aurora, expected to face some of the largest reductions. State estimates suggested the hospitals could see cuts of about $18.1 million and $12.4 million, respectively.
The proposed reductions were included in a broader budget package the Colorado Senate passed in February as state officials work to address a projected $850 million budget shortfall.
Hospital leaders strongly opposed the proposal, warning it could force systems to cut hundreds of residency training positions and further strain the state’s physician workforce pipeline, particularly in rural communities where recruiting physicians is already challenging. Richard Zane, MD, chief medical officer of UCHealth, previously told the Sun the system would have considered eliminating 208 resident full-time equivalent positions, which would translate to roughly 441 physicians in training annually.
During the March 11 meeting, committee members also asked the state Medicaid agency to explore alternative ways to fund medical education in Colorado, suggesting the issue could resurface during budget discussions next year.
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