This amendment replaces an old hospital payment plan with a new 'Hospital Quality Improvement Program' that gives hospitals extra money for improving patient care and reducing workplace violence.
Colorado2026Enacted
HB26-1432
HB26-1432: New Hospital Quality Incentive Program
Last scannedAug 24, 2026, 8:22 AM
In one sentence
This law ends an old hospital payment program and creates a new one that gives extra money to hospitals meeting specific safety, quality, and workplace violence goals.
What it does
- Repeals the health-care delivery system reform incentive payments program within the Colorado healthcare affordability and sustainability enterprise.
- Creates the Hospital Quality Incentive Program to pay hospitals for delivering safer care, improving patient outcomes, reducing preventable hospital visits, and addressing workplace violence.
- Requires the new program to include a performance metric related to workplace violence in hospitals.
- Mandates that the Enterprise Board approve the payment percentage, structure, measures, and scoring methods before starting the program.
- Limits total payments under the new program to no more than 9% of hospital reimbursements from the previous state fiscal year once approved.
Who it affects
- Licensed or certified hospitals in Colorado that receive reimbursement through the enterprise system.
- The board of the Colorado healthcare affordability and sustainability enterprise, which must approve program details.
- Hospital representatives with clinical expertise who provide input on developing the new program.
Limits and unknowns
- The program cannot start until the Enterprise Board formally approves its structure and measures.
- Payments are capped at 7% of total reimbursements from the previous year unless and until the board approves a new program, after which the cap increases to 9%.
- Changes necessary to comply with federal law may be implemented immediately without waiting for standard board review.
Plain language
Terms to know
- Colorado Healthcare Affordability and Sustainability Enterprise
- The state organization that collects fees from hospitals to fund health care programs, including this incentive system.
- Hospital Quality Incentive Program
- A new payment system where hospitals earn extra money by meeting specific quality and safety standards set by the Enterprise Board.
- Performance Metrics
- Specific measurements used to track how well a hospital meets goals like patient safety, reducing preventable care use, and preventing workplace violence.
Official record
Sources
Official summary
The act repeals the health-care delivery system reform incentive payments program in the Colorado healthcare affordability and sustainability enterprise (enterprise) and creates the hospital quality incentive program (incentive program) to use enterprise hospital provider fee revenue to make additional payments to hospitals that meet performance metrics in delivering safer and more effective care that improves patient outcomes and reduces preventable utilization to reduce health-care costs. Prior to implementing the program, the enterprise board shall approve the percentage of hospitals' reimbursement in the incentive program and the incentive program structure, performance measures, and scoring methodology. Once the incentive program is implemented, the total amount of payments made under the incentive program must not exceed 9% of the total reimbursements made to hospitals in the previous state fiscal year. (Note: This summary applies to this bill as enacted.)
Official activity
Bill history
- Governor SignedGovernor
- Sent to the GovernorGovernor
- Signed by the President of the SenateSenate
- Signed by the Speaker of the HouseHouse
- Senate Third Reading Passed - No AmendmentsSenate
- Senate Second Reading Special Order - Passed - No AmendmentsSenate
- Senate Committee on Health & Human Services Refer Unamended - Consent Calendar to Senate Committee of the WholeSenate
- Introduced In Senate - Assigned to Health & Human ServicesSenate
- House Third Reading Passed - No AmendmentsHouse
- House Second Reading Special Order - Passed with Amendments - CommitteeHouse
- House Committee on Health & Human Services Refer Amended to House Committee of the WholeHouse
- Introduced In House - Assigned to Health & Human ServicesHouse
Changes
Amendments
5 stored
This amendment changes the name of a new hospital payment program to 'Hospital Quality Incentive' and sets rules for how much money can be paid out.
This amendment adds a new rule allowing the state to collect fees from hospitals and use that money to fund quality improvement programs.
This amendment adds rules allowing state officials to ask the federal government for special permission to change how hospital fees are collected and used.
This amendment adds a new duty for the enterprise board to work with state officials and hospitals on getting federal permission needed to fund a hospital quality incentive program.