Children’s Hospital Colorado is warning it may shut down the cancer treatment center at its Colorado Springs hospital and make other cuts in key departments this year because of a change in how military families’ insurance pays for care. In October, Tricare — which insures active-duty military members and their families — changed the way it sets payments to children’s hospitals, tying them to what Medicare would pay for the same services, as the insurer does for services to adults at civilian hospitals. The U.
S. Department of Defense said the change would save the military up to $45 million in taxpayer funds annually, . Children’s Hospital Colorado estimated it has lost about $2.
1 million a month since October compared to how Tricare used to pay, with the health system’s Colorado Springs facilities taking a bigger hit than those in Aurora, because of the large military presence on the southern end of the Front Range. The system estimated about 16,000 kids insured by Tricare receive care at Children’s Hospital Colorado facilities, and about one in five children who receive care at the Colorado Springs hospital and clinics have military coverage. The $25.
2 million annual loss is a relatively small percentage of Children’s budget of more than $1 billion a year, but officials with the health care system say the Colorado Springs hospital could close its cancer center and make cuts in its neonatal intensive care unit and emergency department if nothing changes. Ch.
