Kaiser to Expand CommonSpirit Partnership After Stint with Intermountain Health in Colorado

Kaiser Permanente is expanding its partnership the CommonSpirit Healthcare network in Colorado starting “in early 2025,” which could give an estimated 515,000 Coloradans access to the hospital network’s in-patient and emergency care services, the two healthcare giants announced on Sept. 10. 

The move comes several years after select Intermountain Health hospitals joined Kaiser’s network in Colorado, the only Kaiser Permanente region in IMH’s portfolio. Colorado Permanente Medical Group president Jeff Krawcek said in a press release that Kaiser “regularly reassesses” its relationships with healthcare providers.

“As we deepen our relationship with CommonSpirit Health, we remain dedicated to delivering exceptional patient care while optimizing our unique care delivery model and exploring new ways to keep health care high-quality and affordable,” Kraweck said. 

In response to the announcement, Intermountain Health presidents Jim Sheets and Scott Peek emailed company employees to say that “transitions like this bring new opportunities.”

“We have appreciated our decades-long relationship with Kaiser and their decision saddens us,” the duo wrote. “However, the reasons for this decision are not related to any concerns over access challenges or the quality of care that patients receive at our 5-star rated hospitals.” 

Kaiser’s move is also happening at a time when the cost of healthcare is rising in Colorado and hospital networks like CommonSpirit are bearing the brunt of the impact. According to the Colorado Health Institute’s 2023 Affordability of Care survey, more than one in four Coloradans with individual market coverage could not afford the care they needed. Another 26.4% said they received a bill from a healthcare provider they thought their insurance would cover. 

The rising cost of care is impacting both patients and caregivers alike. CommonSpirit’s most recent financial report, from March 2024, said it posted an operating loss of $365 million and a -3.9% profit margin during the first quarter. The hospital’s expenses also grew to $151 million as patient volumes exceeded pre-pandemic levels. 

Adam Fox, deputy director for the Colorado Consumer Health Initiative, said partnering with an insurer like Kaiser could allow more patients to visit CommonSpirit hospitals. Still, it could also give the insurer more influence over the reimbursement rate the hospital network receives. In Q1, CommonSpirit said costs related to salaries and supplies increased more rapidly than its income from payor reimbursement rates. 

“Insurers are always going to be looking for where they can have the most beneficial sort of contract with hospitals,” Fox told the Times Recorder in an interview. 

Beginning next year, Kaiser plans to integrate physicians and other employees into three CommonSpirit hospitals: St. Anthony, OrthoColorado, and St. Anthony North. This includes specialists, general surgeons, orthopedists, cardiologists, palliative care physicians, and pulmonologists.  

Kaiser members in the Denver metro area will also have access to Level 1 trauma centers like St. Anthony Hospital in Lakewood and OrthoColorado Hospital, which is the only orthopedic and spine specialty hospital in the Rocky Mountain Region. 

Members in the Denver metro area will still have access to Good Samaritan or Saint Joseph’s hospitals. 

CommonSpirit announced that members in Colorado Springs will still be able to access Penrose Hospital, St. Francis Hospital, and St. Francis Hospital—Interquest. In Cañon City and Pueblo, members can still access St. Thomas More Hospital and St. Mary-Corwin Hospital, respectively. 

“We know healing close to home is important to every patient, and through this collaboration, we look forward to welcoming Kaiser Permanente members and ensuring every patient experiences outstanding care and service when they need us most,” CommonSpirit Mountain Region President Andrew Gaasch said in a press release.

CORRECTION: An earlier version of this story incorrectly stated the length of Kaiser and IMH’s relationship, the hospitals included in the network expansion and the number of western states Kaiser operates in.