Vermont Hospitals Submit Recovery Budgets

Special To The Eagle Times
MONTPELIER, Vt. — The state’s non-profit hospitals have submitted what the Vermont Association of Hospitals and Health Systems is calling among the most complex and challenged budgets in recent history to the Green Mountain Care Board, following years of negative margins and challenges exacerbated by the COVID-19 pandemic.

All hospitals worked to reduce costs, secure efficiencies and make critical investments to support staff and ensure that access to care is protected. In particular, hospitals are forging and strengthening partnerships with organizations across their respective communities to address growing challenges in housing, transportation, primary care, long-term care, mental health and substance misuse disorder programs and services, and much more.

“I am incredibly proud of our hospitals for building and submitting recovery budgets that demonstrate fiscal restraint, that are in line with health care inflation and generate only what is necessary to carry on our tradition of putting people and communities at the center of our work,” said Mike Del Trecco, president and CEO of the system.

“We need look only at the horrors of last week’s devastating floods to remember that our hospitals are on the frontlines of every state crisis, no matter their form. They must be strong and stable to face anything that comes our way, and that is why these resources are so critical.”

These budget submissions are part of the annual budget review and approval process led by the Green Mountain Care Board. This year, board guidance — that is the direction the board provides to hospitals when developing budgets — was significantly below inflation, which created concerns that the non-profit hospital system would not have the resources necessary to meet its mission.

“Ongoing recovery requires the expertise of our hospital providers and leaders to ensure we emerge strong, and these budgets are a critical step in that direction,” added Del Trecco.

Each hospital budget submission includes detailed efforts to reduce costs, invest in community partnerships and manage ongoing workforce challenges and increased patient volumes and care needs. This work includes:

Expense management, including FTE position control and the elimination of positions and delays in hiring of staff, as well as contract evaluations to limit cost growth,

Sharing of employees among hospitals including physicians and services where appropriate.

Investments in facilities and equipment necessary to reduce wait times and improve access,

Improving the workforce pipeline for the healthcare delivery system by partnering with Vermont State University and other institutions of higher education,

Investments in technology like electronic health records to improve care coordination and achieve efficiencies where possible.

“The examples represent initiatives that many of our hospitals have been undertaking for years and they are a small fraction of the work being done to make health care more affordable and accessible for Vermonters,” Del Trecco stated.

“We know that like hospitals, Vermont families and businesses are also feeling the pinch of higher costs for everyday goods and services brought on by inflationary pressures. The work that our hospitals are doing alongside community partners and state leaders is essential to the health and vibrancy of our entire state, as we all grapple with the same economic and workforce challenges.”