Medical Marijuana in Health Facilities: Colorado’s New Law and What It Means for Your Organization

Key Takeaways

• Beginning August 12, 2026, certain eligible patients admitted to or residing at health facilities (which include general hospitals, hospital units, psychiatric hospitals, rehabilitation hospitals, community clinics, nursing care facilities, hospices, assisted living residences, dialysis treatment clinics, and ambulatory surgical centers) may use medical marijuana on the health facility’s premises.
• An eligible patient is one who: (1) is registered with the Colorado medical marijuana program; (2) has a terminal illness; and (3) is checked in to or resides at a health facility. An eligible patient at a participating health facility may use medical marijuana in a form that does not involve smoking or vaping, is in accordance with the patient’s prescription or physician recommendation, and does not otherwise violate the requirements of the Colorado medical marijuana program.
• Notably, a health facility is not required to permit eligible patients to use medical marijuana on-site. However, should a health facility participate, it must: (1) have a process to request and maintain a copy of the patient’s valid medical marijuana identification card; (2) document the patient’s medical marijuana program user status and usage in the patient’s medical records; (3) establish written guidelines for the possession, use, administration and storage of medical marijuana in the health facility; and (4) may reasonably restrict the possession, use, administration and storage of the medical marijuana to ensure safety of other patients, guests, and employees, the safe operations of the facility and compliance with other state laws.
• The Department of Public Health and Environment is prohibited from requiring compliance with this new law as a condition of obtaining or renewing a license or certification and health facilities are allowed to suspend compliance with the new law if they risked enforcement action by a federal agency.

Recommendations

A health facility that desires to provide access to medical marijuana to its patients should take action now to ensure it can fully comply with the new law by August 12, 2026. We recommend the following steps:

Develop comprehensive written guidelines. The new law requires written guidelines for possession, use, administration, and storage of medical marijuana. These guidelines should address designated storage areas and security measures, caregiver and staff roles in administration (including whether facility staff may assist with administration or whether patients must self-administer), documentation and recordkeeping requirements, procedures for verifying patient eligibility and maintaining copies of medical marijuana identification cards, and protocols for handling adverse reactions or incidents.

Review and revise existing policies and procedures. Facilities should assess how participation in the new law intersects with existing policies on controlled substances, patient safety, infection control, and employee conduct. Particular attention should be paid to drug diversion prevention measures and incident reporting procedures.

Assess risk management and insurance implications. Facilities should consult with their liability insurance carriers to determine whether participation affects coverage. Additional considerations include professional liability exposure for staff involved in administration, premises liability concerns, and whether additional coverage endorsements may be necessary.

Develop a comprehensive education and training strategy. Facility leaders, clinical and non-clinical staff, and patients should be educated on the new law and the facility’s written guidelines. Training should cover eligibility verification procedures, proper handling and storage protocols, documentation requirements, and how to address questions or concerns from other patients, visitors, and staff.

We have the resources to help health facilities navigate the legal considerations related to business operations and compliance with this new law. Please reach out to the authors or your Foley Hoag relationship partner with any questions.