Premiums for Coloradans in HMOs rose to an average of $291 a month in 2007, a $20 increase from the previous year, according to a new analysis.
Denver-area hospitals, meanwhile, reported strong profits — on average, a 9 percent profit margin on patient care.
“2007 was a very good year for the hospitals,” said health care analyst Allan Baumgarten. “And for the HMOs, that year was even more profitable than 2006 was for them.”
The $291 per member, per month, represented a 7.4 percent increase from the prior year.
The number of Coloradans in an HMO dropped from 973,000 to 914,000, a sign people are turning to other types of health care coverage.
Denver-area hospitals reported a pre-tax net income of $431.1 million in 2007, according to Baumgarten’s analysis, which relies on hospital cost reports submitted to Medicare.
The most profitable in the metro area was HealthOne, which had a net income of $270.7 million, or a 17.8 percent profit margin, on patient care.
The system’s newest hospital, Sky Ridge Medical Center in Lone Tree, reported profits of $48.3 million, or 23.4 percent, on patient care.
HealthOne spokeswoman Leslie Horna said Medicare cost reports exaggerate profitability. The federal office does not acknowledge many operational costs, she said.
Horna said the hospital system “earns money locally and invests it right back into patient care, our staffs, facilities and technologies to improve safety and quality.”
Two hospitals in the Denver area lost money on patient care — Avista Adventist Hospital in Louisville and the University of Colorado Hospital in Aurora, according to the analysis.
Hospitals that served the highest percentage of patients covered by Medicaid included Avista, University, Children’s Hospital and Denver Health Medical Center.
Jennifer Brown: 303-954-1593 or jenbrown@denverpost.com
