Denver voters backed a sales tax increase designed to provide more money to Denver Health, the city’s safety net hospital system.

Though votes were still being counted, the margin in favor of the tax hike was sizable at roughly 13 points, with 155,698 votes supporting the measure out of 275,723 counted so far, according to the latest tally.  

“The success of 2Q Denver Health reflects the feel-good advertising that backed it,” Councilmember Kevin Flynn said. “Health care was a hot topic this election.”

Flynn had opposed another sales tax hike proposal to voters, though the City Council ultimately sent both measures to the ballot. As that proposed tax increase made its way through committees and the full city council, Flynn called sales taxes a “regressive” method of raising money.

Voters rejected that other sales tax hike, which sought to generate $100 million for “affordable” housing programs. 

By contrast, Flynn called the tax hike for the hospital system a “needed resource” in previous meetings. His concern, he said, lies in finding a sustainable way to fund a system that hasn’t broken even in years. He previously suggested a regional approach to funding it, since the hospital serves patients from everywhere.

“Our sales tax revenues are already falling short of our projections and that has me concerned for our general fund,” he said at a committee meeting in June. “It might be time to look at putting a ceiling on our sales tax rates.”

Denver Health has not been profitable for many years and recently, the costs of uncompensated care has skyrocketed, officials said. This is partly because the hospital treats everybody who comes through its doors.

Some hospital officials attributed a rise in uncompensated care costs to Denver’s immigration crisis, which the city budgeted $90 million for in 2024. The city has only spent about $70 million of that amount — the same amount of money the proposed sales tax rate increase would provide annually.

When the sales tax rate increase takes effect, Denver residents will pay a 9.15% sales tax, one of the higher values in the state. There are exemptions to the city’s sales taxes, such as gas and food.

Denver Health officials are staying quiet on the measure until the official results are shared by the Clerk’s Office, though a spokesperson noted CEO Donna Lynne’s “cautious optimism” from election night.