Denver Health warns Denver CARES could face 2027 cuts without $3.9 million from city
Denver Health says its substance-use treatment program needs $3.9 million from Denver in 2027 and warns a shortfall could reduce services and put about $8.5 million in outside funding at risk.
Denver Health warned that Denver CARES could face service reductions in 2027 if Denver does not provide the hospital’s requested $3.9 million contribution. The City Council has not finalized the program’s funding.
At a Sept. 21 budget hearing, Denver Health said Mayor Mike Johnston’s proposed budget restores $450,000 of the $5 million reduction in city support the hospital absorbed in 2026. The proposal includes no increase for Denver CARES, a substance-use and withdrawal-management program, according to Denver Health’s presentation to City Council.
Denver Health said Denver CARES will cost about $12.4 million to operate in 2027, with the city’s requested share rising to $3.9 million from $3.2 million in 2026. Medicaid, grants and other sources provide most of the remaining funding. The hospital said it is not willing to continue subsidizing the program at the requested level.
Denver CARES provides short-term withdrawal management, counseling, temporary residential care and referrals to longer-term treatment. Denver Health officials estimated that the program serves roughly 10,000 to 10,300 patients and handles about 25,000 to 28,000 visits annually. About half of participants are brought by police and half arrive voluntarily, officials said.
Denver Health’s chief of government affairs, Dr. Steve Federico, said an unfunded gap could lead to reductions in some services and put roughly $8.5 million in related state and other funding at risk. He said reducing services could cause the program to fall below requirements for some outside funding sources.
Johnston said the city’s other funding for the program would continue and that Denver CARES would not necessarily close, but Denver Health might have to pare back services. Council members discussed reducing operating hours, including possible weekend closures. Denver Health officials said shorter hours could jeopardize the other two-thirds of the program’s funding and would not necessarily produce useful savings.
No specific service reduction, hours change or termination has been announced. The hearing ended without a final 2027 funding decision.