Search
Medicaid Monitor
Thursday, October 15, 2026 · Updated 6:10 AM MT · 29 stories today
Thu, Oct 15 · 29 stories todayPRO
← All stories
Industry · COOctober 14, 2026

Colorado Rural Hospital Cuts 77 Jobs Amid Unpaid Insurance Claims

Montrose Regional Health, a rural Colorado hospital, announced Monday it is eliminating 77 positions, including 34 layoffs and 43 vacant roles left unfilled, to cut $8 million from its budget. The hospital cites $25 million in outstanding insurance payments for care already provided, including claims overdue more than six months, alongside rising labor and supply costs that have outpaced reimbursement. Cuts include three physicians, three advanced practice providers, and 12 leadership roles, and will result in reduced cardiology services in Telluride and scaled-back pediatric occupational therapy, sleep, and pulmonary programs. The hospital did not cite Medicaid reimbursement as a driver, though it acknowledged uncertainty about looming federal Medicaid funding cuts that lawmakers warn could disproportionately hit rural hospitals.

Why it mattersRural hospitals facing commercial insurer payment delays and flat reimbursement are a leading indicator of financial strain that federal Medicaid funding cuts could compound, threatening access to care for Medicaid beneficiaries in underserved areas.

Finance

Read the full article at cpr.org →
Share this briefing

You might also like

← All stories

Get the daily briefing.