Hospital and Health-Care Trusts

C.R.S. tit. 11, art. 70

in effect

C.R.S. § 11-70-101 Trust agreements among a group or association of physicians, dentists, or health-care institutions authorized

11-70-101. Trust agreements among a group or association of physicians, dentists, or health-care institutions authorized. (1) There is hereby authorized the establishment, maintenance, administration, and operation of any trust, established by agreement of any group or association of physicians, dentists, or health-care institutions, properly licensed by the state of Colorado, as grantor, with such physicians, dentists, or health-care institutions as beneficiaries, for the purpose of insuring against loss by the payment of compensation under the Colorado workers' compensation law and general public liability claims based upon acts or omissions of such physicians, dentists, or health-care institutions, including, without limitation, claims based upon malpractice. Such group or association of physicians, dentists, or health-care institutions may, by trust agreement among themselves and a trustee or trustees of their selection, specify the terms, conditions, and provisions of such a trust. (2) Upon approval of the executive director of the department of labor and employment and if the terms of the trust agreement so authorize, the following entities may be included as participants in or members of a trust created pursuant to subsection (1) of this section: (a) Organizations or associations in which licensed health-care institutions are qualified members; (b) Entities which own or operate otherwise qualified licensed health-care institutions under this article; or (c) Residential, retirement, or personal care facilities, whether or not such facilities are required to be licensed by this state.

C.R.S. § 11-70-102 Title to property of trusts - liability of trust and trustees

11-70-102. Title to property of trusts - liability of trust and trustees. The trustees of trusts established pursuant to this article shall hold the legal title to all property at any time belonging to the trusts. They shall have control over such property, as well as the control and management of the business and affairs of the trust. Liability to third persons for any act, omission, or obligation of a trustee of a trust, when acting in such capacity, shall extend to the whole of the trust estate, or so much thereof as may be necessary to discharge such obligation, but no trustee shall be personally liable for any such act, omission, or obligation. The trustees shall have such powers as to the investment of the trust estate as may be set out in the declaration of trust, without regard to the type of investments to which trustees generally are restricted by the provisions of part 8 of article 1 of title 15, C.R.S., nor shall such trustees be subject to the provisions of title 10, C.R.S., concerning the regulation of insurance; except that the trustees shall report any malpractice claim against a licensed practitioner that is settled or in which judgment is rendered against the insured to the Colorado medical board, which board shall provide statistical data concerning such claims to the commissioner of insurance. Without limiting the generality of the foregoing, the trustees shall have any powers, whether conferred upon them by the agreement of trust or otherwise, to perform all acts necessary or desirable to the conduct of the business of a public liability insurer.

C.R.S. § 11-70-103 Obligation of participating physicians, dentists, and hospitals limited

11-70-103. Obligation of participating physicians, dentists, and hospitals limited. No physician, dentist, or hospital which is a participant in such a trust, as grantor, member, beneficiary, or otherwise, shall be liable or obligated to the trust, to the trustee, to any grantor, member, or beneficiary, to any creditor of the trust, or to any other person by virtue of its participation other than for the payment of its full agreed contribution to the trust in accordance with the trust agreement. Without limiting the generality of the foregoing, no participating physician, dentist, or hospital shall incur any other liability of any nature whatever because of or arising out of its participation in such a trust.

C.R.S. § 11-70-104 Application of article

11-70-104. Application of article. All of the provisions of this article shall apply to, and shall confer all rights, privileges, exemptions, and immunities upon, any trust established for the purposes contemplated by this article and the grantors, members, beneficiaries, participants, and trustees thereof, whether such trust was established before or on or after July 1, 1977.

C.R.S. § 11-70-105 Insurance

11-70-105. Insurance. The coverage provided by a trust established pursuant to this article shall be deemed insurance for the purposes of any requirements relating to proof of financial responsibility.

C.R.S. § 11-70-106 Certificate of membership

11-70-106. Certificate of membership. Certification of membership in a trust established pursuant to this article shall meet the certification requirements of any hospital-medical liability requirements.

C.R.S. § 11-70-107 Workers' compensation

11-70-107. Workers' compensation. The coverage provided by a trust established pursuant to this article shall be deemed insurance meeting the requirements of article 44 of title 8, C.R.S., to secure the payment of compensation under the Colorado workers' compensation law, and such trust, upon obtaining approval of the executive director of the department of labor and employment, may act as its own insurance carrier, as provided in section 8-44-201, C.R.S.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-11.docxFetched: 10/6/2026