Federal health changes could cut Southwest Health System funding by 2033

Southwest Health System could lose about $9.6 million a year by 2033 if HR 1 works through the system the way hospital leaders fear, a hit that would land in Cortez and ripple into Dolores County. Joe Theine, the health system’s chief executive, said that kind of loss threatens staffing and services at the Cortez-based network that many residents in Dove Creek, Rico and the surrounding area rely on for care close to home.

A Thursday Zoom call brought together Colorado members of Congress, hospital executives and advocates. The federal bill could have enormous effects on rural patients and hospitals. The measure cuts roughly $1 trillion from Medicaid and insurance subsidies.

U.S. Rep. Jason Crow said families are already seeing insurance premiums jump from about $300 to $1,500 a month, a spike he said forces people to choose between prescriptions and housing. Sen. John Hickenlooper called the situation a full-blown health-care emergency and said the pressure would hit hardest in rural hospitals and clinics that already operate on thin margins.

Southwest Health System is part of the narrow medical safety net serving Dolores County, where a missed appointment can quickly turn into a long drive for treatment. If the Cortez system absorbs a multmillion-dollar annual loss, the result could be fewer staff available, tighter schedules and less room to keep routine care local. Patients already travel to Cortez for services not available in smaller towns.

Another hospital chief on the call said rural facilities often have only 30 to 40 days of cash on hand. That leaves little cushion if federal changes reduce revenue while payroll, equipment and basic operations keep climbing.