Health care costs topic of council discussion with GVH

Affordability a problem for everyone

By Mark Reaman

A September 2 letter sent by the Crested Butte town council to Gunnison Valley Health has spurred some conversation over health care cost issues in the valley. GVH responded to the letter on September 25 and GVH officials came to the October 20 town council meeting to talk over the issues.

The original town letter stated that rising health care costs were putting basic services out of reach for many residents and forcing employers to make hard choices. The letter signed by mayor Ian Billick noted some out-of-pocket heath care premiums could increase up to 250%. The Western Slope of Colorado already has some of the highest premiums in the state and it could force many families to forgo health insurance.

“We encourage GVH to carefully consider how it manages the balance between ensuring community members have access to basic health care services with demands to improve levels of service,” the letter states, making clear there is a worry that increased services can price out community members. The letter expresses concern that new services provided by GVH could move the community further away from affordable health care.

GVH board chair Mark Kaufmann and chief executive officer Jason Amrich responded with a seven-page letter detailing challenges faced by GVH. They emphasized that premium increases are determined by insurance companies independent of GVH’s operations or pricing. Other challenges listed included the fact a rural hospital has lower volumes than those in an urban area but fixed costs. Workforce challenges arise in facilities like GVH as do factors like the seasonal flux of people in the valley.

Amrich attended the council meeting and said the town’s letter was appreciated. “Affordability for the community is important to us too,” he said. “It is good to look at ways to work together to find affordability.” 

He said given some federal decisions, GVH is expecting an increase in uncompensated care that comes in through the Emergency Department. At the same time, he said, labor and supply costs are up 20% since 2021. Amrich said GVH has brought increased services to the valley like dermatology, based on community feedback.

He acknowledged the fact several local medical practices have come under the GVH umbrella recently because they were facing challenges. “We need those offices out there,” he said. “We are trying to help keep those businesses solvent to benefit the community.”

Amrich said GVH works with health care systems in Salida and Montrose to sometimes share physicians so one hospital isn’t 100% responsible for an entire salary. 

Billick asked why GVH didn’t seem to be providing local leadership in trying to contain the coming giant health care premium increases. Amrich said that is out of their purview, but they do try to do things to keep health care costs low like providing low-cost blood draws throughout the valley.

“Affordability is a really hard situation,” said Amrich. “What concerns me the most is whether we have enough revenue coming in to cover costs. We provide coverage from birth through death. I’m not sure what I would choose to stop if we hit a critical financial point.”

“I appreciate the discussion and the creativity,” said councilmember Gabi Prochaska. 

“Our GVH culture is to try and get better every day,” Amrich said. “That has helped with overall patient quality and safety. 

“Thanks for the conversation. It is a really wicked problem,” concluded Billick.

“We’re appreciative of your letter,” Amrich told the council at the meeting. “We are more keenly aware to be more transparent and have more community dialogue in the future.”

GVH made clear that while it cannot control insurance company decisions or federal policy changes, “We recognize our role in the broader health care affordability challenge and are committed to being part of the collaborative solutions within our valley community.”