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UCHealth sues Colorado’s state Medicaid agency over hospital classification

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UCHealth sues Colorado’s state Medicaid agency over hospital classification


UCHealth sued the agency overseeing Medicaid in Colorado on Friday, alleging it mislabeled two of the health network’s hospitals, costing it the fair share of a fee to offset uncompensated care.

The lawsuit, filed in Denver District Court, alleges the Colorado Department of Health Care Policy and Financing mislabeled two UCHealth facilities as publicly owned, rather than private nonprofit hospitals.

UCHealth said the alleged misclassification had reduced the amount that Memorial Hospital in Colorado Springs and Poudre Valley Hospital in Fort Collins received from the state’s health care affordability and sustainability fee.

Neither the lawsuit nor a UCHealth spokesman said how much money the health system believes it is owed.

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The state collects the fee from most hospitals and uses it to draw down matching federal funds. It then distributes the collected money and the matching funds based on a formula, to offset the cost of uncompensated care and quality improvement efforts.

It wasn’t clear why the state classified the two hospitals as publicly owned or when that happened. The Department of Health Care Policy and Financing on Friday said its officials are reviewing the lawsuit and couldn’t yet comment.

While the two hospitals lease their buildings from local governments, they don’t receive funding from them, and the private entity UCHealth manages them, said Dan Weaver, a spokesman for the health system. The department declined to change the hospitals’ classifications after UCHealth pointed out in December that they didn’t line up with federal rules about what counts as a public hospital, he said.

If UCHealth wins and increases the share going to two of its hospitals, some other hospitals’ shares would decrease. A broader ruling that made the department change how it classifies hospitals could create even more winners and losers.

“As the state’s largest provider of Medicaid services, UCHealth and our hospitals are dedicated to serving low-income residents of our state and those who may live in a rural area. HCPF’s misclassification of our hospitals puts Medicaid patients at risk by potentially denying funds needed for their care,” he said in a statement.

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Some Colorado schools will be closed Thursday due to power outages

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Some Colorado schools will be closed Thursday due to power outages



Some students at Colorado schools won’t be going to school on Thursday. That’s after strong winds on Wednesday on the Front Range and in the foothills caused power outages.

More than 100,000 customers were without power late in the day on Wednesday.

The closed schools include all of the Boulder Valley School District and 25 schools in Jeffco Public Schools. Schools in Gilpin County and Clear Creek County are also going to be closed.

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See the full list of school closings.



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Colorado road conditions: High winds close roads, highways across Front Range

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Colorado road conditions: High winds close roads, highways across Front Range


High winds roaring across the Front Range foothills on Wednesday forced road closures throughout northern and central Colorado, according to state transportation officials.

A wind storm is expected to bring gusts reaching 80 to 90 mph through the entire Interstate 25 corridor, from the Wyoming to New Mexico state lines, according to the National Weather Service.

Colorado Department of Transportation officials announced planned closures of Colorado 93, U.S. 128 and U.S. 287 starting at noon because of the high winds, with no estimated time of reopening. A “high wind caution” was also issued for roads in Clear Creek and Jefferson counties.





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Northern Colorado town to increase water and sewage rates 26% in 2026

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Northern Colorado town to increase water and sewage rates 26% in 2026


As the demand for drinking water in Colorado continues to rise, a Northern Colorado community is planning to increase the price of its water and sewage services by 26% in 2026. 

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The town of Windsor, a rapidly growing community of more than 45,000 residents, plans to start increasing its prices in April of next year.

Town Manager Shane Hale told CBS Colorado the town and council had no other option but to rapidly increase their prices. He attributed it to a need for more services while also improving existing ones.

“We certainly are (aware of the sticker shock),” Hale said. “The town board lives in town. They are going to see these costs as well.”

Hale said the town needs to replace an aging infrastructure for their water distribution.

“We had a major distribution line for water that broke a couple times last year,” Hale said.

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Also, to meet growth demand and EPA standards, the town also needs to completely replace its existing sewar treatment plant in the southeast corner of the community.

“We are not just building an expansion,” Hale said. “We have to build a brand-new plant.

Windsor originally hoped to build the new plant in 2020. Hale said, if they would have been able to do so, it would have cost around $50 million to complete.

However, since then, the cost of labor and supplies has inflated so significantly that the price for the same plant is projected to be three times more expensive than planned for.

CBS Colorado asked Hale why the town didn’t slowly increase rates over the years instead of completing one drastic spike of 26% in 2026.

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“That is a great question. I will tell you we have been gradually increasing our rates each year,” Hale said. “The challenge that we had, especially on the sewer side, were our costs were increased by three times.”

In order to lower the price tag, the town has also reduced the size of the plant it’s going to build. Hale said the current plant can operate 2.8 million gallons of water per day. They hoped to build one that could accommodate 6.3 million gallons per day. However, to offset costs some while also meeting demand of the growing town, they now plan to build a plant that can manage 4.2 million gallons a day.

Hale said the town is at the mercy of the cost of construction and the price of getting machinery into their possession. He also said many of the items they need are only made internationally, meaning they are in line with others to get the product without much room for negotiation.

“Unfortunately, in order to manage our infrastructure and maintain it, the town doesn’t really have a choice,” Hale said.

Hale said the increased prices should be reflected in bills that arrive for residents in March of 2026. Not all residents will be impacted the same, as some are served water by other water providers.

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Hale believes, if it weren’t for inflation, the town would not have increased the price of sewage treatment or water distribution in 2026.



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