For Coloradans living with cancer, access to their physician isn’t just a convenience, it’s a cornerstone of a functioning health care system. When a small private practice or clinic is bought out, consolidated and shut down, a patient battling chronic illnesses is left with fewer options, longer drives and worsening outcomes. Now, our lawmakers are considering legislation that would only accelerate the closing of these practices, and in turn, placing a greater burden on the most vulnerable Coloradans.

Unfortunately, a federal safety net program, the 340B Drug Pricing Program, has contributed to the increasing consolidation of health care, which jeopardizes private physician practices and the patients they serve here in Colorado. Big hospitals, often referred to as 340B covered entities, such as disproportionate share hospitals, gain an advantage by purchasing medications at a 20% to 50% discount through their 340B status, creating a revenue and cash flow advantage that small and local physician practices such as outpatient clinics cannot compete with.

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This financial disparity has accelerated the acquisition of independent practices by large hospital systems. In fact, according to the 2025 Colorado Department of Health Care Policy & Financing Hospital Transparency Report, 26 Colorado physician practices were acquired just by UCHealth hospitals, who participate in the 340B program, representing 35.6% of all physician groups acquired between 2014 and 2023. Meanwhile, CommonSpirit Health, another big hospital that receives 340B discounts and one of the biggest nonprofit hospital chains in the country, acquired 13 Colorado physician practices between 2014 and 2023, which represents 17.8% of all acquired practices.

My organization, the Coalition of Hematology and Oncology Practices (CHOP), which represents independent community hematology and oncology practices across the country, used to have an important presence in Colorado. Unfortunately, hospital consolidation driven by unchecked 340B expansion is putting independent physician practices out of business. This trend doesn’t just affect providers — it directly harms patients by reducing access to care, increasing costs, and leaving entire communities with fewer health care options.

Despite these systems receiving significant discounts on essential medications through their 340B status, they are not required to pass those savings on to patients. Instead, these hospitals frequently markup drug prices, resulting in patients paying significantly more at 340B hospitals compared to independent providers. These large hospitals can then use the excess profits to push small and local physician practices out of business.

This trend isn’t isolated to Colorado. In recent years, large 340B hospitals are responsible for 80% of hospital acquisitions, which directly decreases access to oncologists, hematologists and other health care providers in under-served and rural areas, forcing these practices to close. This consolidation forces patients to endure longer travel times, reduced access and ultimately can lead to an abandonment of their necessary treatment plans.

Colorado legislators are now considering Senate Bill 71, that would allow for uncontrolled exploitation of the 340B program, with no benefit to patients. This bill doesn’t require reporting of how 340B drug discounts are used to help patients, which should always be the priority.

Lawmakers should oppose this legislation and instead focus on patient-centric reforms that help vulnerable and low-income Coloradoans better manage their health.

Kathy Oubre is president of the Coalition of Hematology & Oncology Practices (CHOP).