[P]orter Medical Center in Middlebury says it’s in talks to join the University of Vermont Health Network based in Burlington.
The financially embattled Porter, whose chief executive officer resigned in the spring after less than a year of making controversial budget cuts, announced in a news release Monday that it may “partner” with the largest hospital system in the state.
The announcement comes after the hospital held dozens of forums to consider affiliations with four different organizations, according to Dr. Fred Kniffin, who has served as interim CEO since March.
“It is abundantly clear that if we choose to partner, our best partnering option would be with the UVM Health Network,” Kniffin said. “That is now the only affiliation option that we are considering, should we decide to make that choice.”
“What we have heard loud and clear from our community and our providers and staff during our forums is that maintaining local access to the highest level of health care services appropriate for a community hospital is essential,” he said.
Data from the Green Mountain Care Board show that Porter has posted an operating loss in five of the past six years. And while other players in the hospital system have more than six months of cash in savings to pay their bills, Porter had an average of 86 days’ worth of cash on hand throughout fiscal year 2015.
Ron Hallman, the spokesperson for Porter, said joining the UVM Health Network would allow the hospital to maintain an independent board of directors and improve its “financial strength,” but the Porter board would have to report to the board of the UVM network.
The hospital needs a $3 million to $4 million investment to upgrade its electronic medical records system, he said, but that would eat up its entire capital budget without help from the network. The hospital also needs $10 million to $30 million to upgrade buildings, he said.
“We have been very impressed with our conversations and our interactions with the leaders of the UVM Health Network,” Hallman said. “It would be a very positive thing for our organization and our community, but again that’s a decision that is still to be determined by the Porter board.”
Formerly Fletcher Allen Partners, the UVM Health Network has as its flagship the only academic hospital in Vermont. It also controls Central Vermont Medical Center in Berlin. In May, the hospital system finished acquiring Alice Hyde Medical Center in Malone, New York.
Vermont has 14 hospitals. But because Mount Ascutney Hospital in Windsor is part of the Dartmouth-Hitchcock health network, if Porter joined the UVM Health Network, there would be just 10 unaffiliated hospitals in the state.
Dr. John Brumsted, the CEO of both the UVM Medical Center and the UVM Health Network, announced the possibility of merging with Porter in an email to the entire network’s staff.
He said discussions have been ongoing for more than a year and he expects a decision will come “in the fall after an extensive period of physician, staff and community input.”
Jill Olson, the lobbyist and co-interim executive officer for the Vermont Association of Hospitals and Health Systems, said in a statement that the organization is proud of Porter for considering whether to merge.
“In today’s challenging and rapidly changing health care environment, all of our hospitals are learning to collaborate with each other and with other local organizations to provide the highest quality care,” Olson said.
