Almost half of UUHC's revenues come from treating Medicare and Medicaid patients, squeezing its finances and aggravating its job of staying afloat. At the same time, other hospital systems are shouldering excessive shares of bad debt and charity care expenses, which cut into their financial health, said Crabtree in testimony to the Privately Owned Health Care Organization Task Force.

Without broad reforms, it's only a matter of time before some Utah hospitals are forced to trim services, Crabtree said.

Crabtree said the panel should consider a system similar to one in Virginia, which requires health care organizations to contribute to a pool of funds that can be used to offset scant Medicaid and Medicare reimbursements, as well as charitable and bad-debt expenses. The state of Virginia makes up any shortfall, Crabtree said.

"We need to find a way to equalize the cost of providing (underfunded) health care. The cost can't be borne by one (hospital) system or another," Crabtree said after his testimony.

Government reimbursements account for 46 percent of UUHC's revenues, a bigger share than other Utah hospital systems. Other hospital systems write off as much as 15 percent of their revenues to pay for charity care and bad debts, Crabtree said.

Lawmakers appeared to listen carefully, but did not indicate whether they agreed with Crabtree's remarks.

The panel of 15 senators and representatives is exploring whether state policies promote competition in the health care market, as well as the business practices of health care organizations and how they impact consumers.

Panel members will decide if legislation is necessary to open Utah's health care industry to more competition.