Colorado
Polis’ budget proposal would cut Colorado support for training new doctors
Gov. Jared Polis’ administration is proposing an $18.2 million cut to Colorado’s funding for medical education, a reduction that hospitals say might force them to reduce training slots.
The cut applies to residency programs, which train medical school graduates for three to seven years before they move into independent practice. Medicare funds direct costs, such as residents’ salaries, for the majority of available slots.
States can then choose whether to use Medicaid — whose costs they split with the federal government — to fund indirect costs and additional slots. Currently, Colorado is one of 23 states that do, according to Polis’ Jan. 2 budget letter.
The Department of Health Care Policy and Financing, which administers the funding, didn’t clarify Monday whether the cut would end the state’s contribution to indirect medical education costs, or if it would continue to provide a smaller amount.
“Reductions in (indirect medical education) payments would be limited to system hospitals, those more able to lean on their systems partners to share financial burden; no rural hospitals would be affected by this policy,” the letter said.
Hospitals also can bill patients’ insurance for services provided by residents, though not for the time that established doctors spend supervising them.
The state faces a challenging budget year, with a shortfall of nearly $1 billion. The governor’s budget proposal, which includes significant cuts to Medicaid beyond reducing spending on medical education, got a less-than-enthusiastic reception from lawmakers when he presented it in November, though.
The American Association of Medical Colleges reported 21 hospitals in Colorado participate in teaching. More than one-quarter of the 1,220 residency slots in the state don’t receive funding for direct costs from Medicare, making indirect cost funding important to maintaining them, it said in a fact sheet.
The $18.2 million cut to medical education at facilities that are part of systems would cost teaching hospitals an additional $41.5 million in federal matching funds, said Heather Retzko, one of the principals at Policy Matters, a lobbying group that works with the hospital industry in Colorado. At this point, the department hasn’t clarified if all 17 teaching hospitals that are part of systems would face equal reductions, she said.
Dr. Richard Zane, chief medical and innovation officer at UCHealth, said the system has “hundreds” of residency slots that don’t receive funding from Medicare, meaning that if state funding disappeared, it would have to either come up with the money itself or cut those positions. He declined to speculate about how many training slots it might eliminate.
“It would be substantive. That’s all I can say,” he said.
Nationwide, an average of 60% of doctors ultimately practice in the market where they completed residency, so fewer slots in Colorado would mean fewer health care providers here in the future, Zane said. The step seems counterproductive, since one of the arguments behind opening a new medical school at the University of Northern Colorado was that the state needs more doctors, he said.
“Despite adding medical student positions, we’re decreasing training positions,” he said.
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Colorado
Letter to the editor: Don’t let Democrats gut TABOR in Colorado
Democrats frustrated? Fine by me! House Speaker Julie McCluskie says we need a real conversation about the state’s fiscal constraints? Well, here it is.
The state is required to pass a balanced budget just like everyone else who lives here, spending no more than what is available, unless they want to file for bankruptcy. Yet Democrats controlling Colorado continue to desire more and more of our money to fund and expand their pet projects in order to take care of us. They will certainly do that if we let them, but perhaps not how we expect.
Their expansion of Medicaid over the years is a good example. The Dems relied on federal payments that were increased in the COVID years to expand the program, knowing good and well those payments were only temporary. Now they want the citizenry to keep funding those increases. Same with many other of their nanny state programs.
The good-thinking citizens of Colorado voted down TABOR attacks by the Democrats in 2019 and 2023 by significant amounts, yet they continue to try circumventing it, even calling many of their tax increases “fees” in order to get around it. The populace knows reality.
“Liberal groups”, woefully unidentified by Summit Daily, are attempting to gut our TABOR flat tax and push us into a graduated income tax so well-off individuals have to pay even more. Why? To be more fair? No. To raise more revenue the Democrats can spend, just like California and New York. That would turn us into a comparable state all right, where wealthy citizens would just leave to avoid higher taxes. What happens when the wealthy leave? Colorado would lose even more revenue, unless of course, the rest of us pay more. That would happen if TABOR is gutted.
Colorado
Police arrest 2 juveniles, search for third in Colorado, accused of crashing stolen car into patrol vehicle
Police in Arvada arrested two juveniles and searched for a third juvenile early Monday morning in connection with an auto theft. According to investigators, the suspects swerved at officers who were on foot in the area near 60th Avenue and Yarrow Lane.
That’s when they allegedly drove into a patrol vehicle.
After a brief chase, officers were able to track down two suspects and continued to search for the final suspect.
Colorado
Colorado man convicted of multi-million-dollar scheme to sell hand sanitizer during COVID
A 51-year-old Castle Rock resident was recently found guilty on 15 counts of fraud by jurors in Denver federal court.
According to a court document, Rico Tomas Garcia received $2.4 million from two businesses at the outset of the COVID pandemic. He spent the money to purchase a vehicle and three properties without delivering any of the promised product.
Garcia agreed in April 2020 to provide nine million 16-ounce bottles of hand sanitizer to a Virginia-based distributor of personal protective equipment (PPE) and safety work gear, according to the grand jury indictment in his case. A second company financed the deal for the distributor.
If reached in full, the deal would have paid Garcia $37.8 million. But Garcia reportedly moved the first $2.4 million paid to him into accounts held by three corporations operated by he and his girlfriend.
A month after making the deal, none of the product was delivered and the finance company halted payments and demanded a refund. Instead, Garcia, according to the indictment, falsified documents about his arrangements with a Chinese manufacturer of the hand sanitizer.
The contract was terminated in June of that year.
Garcia allegedly bought homes in Topanga Canyon, California and Sedalia, Colorado, plus an undisclosed Nevada property, with the ill-gotten proceeds. Federal prosecutors also allege Garcia moved over a million dollars of the remaining money into offshore accounts in the Caribbean.
A federal grand jury indicted Garcia in April 2024. He was taken into custody eight months later. The jury reached its verdict March 9 after a week-long trial, finding him guilty of nine counts of wire fraud and six counts of money laundering.
Meanwhile, the distributor and its finance company are still trying to resolve their finances through a civil lawsuit filed the year the deal went south.
Garcia is scheduled to be sentenced Sept. 8.
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