[I]n a series of public hearings starting next Monday, Vermont hospital administrators will make their case for proposed budgets that include a combined $2.6 billion in patient revenue.
The Green Mountain Care Board has scheduled four hearings in Montpelier, Burlington and Castleton over the last two weeks in August to review fiscal year 2019 budget submissions from 14 hospitals.
Board members will make decisions on those budgets in September. They’ll consider testimony from the hospitals as well as input from the public and the Office of the Health Care Advocate.
“It shouldn’t surprise anyone that the Health Care Advocate’s office is primarily focused on affordability, and how these proposed rates impact Vermonters in each of the hospital communities,” said Mike Fisher, Vermont’s chief health care advocate.
The Green Mountain Care Board regulates hospital revenues in two ways: The board sets budgets, then reviews financial performance and adherence to those budgets.
The board currently is in budget-setting mode for the hospital fiscal year that begins Oct. 1.
Last month, board members got a first look at fiscal 2019 budget data. It showed that, overall, the hospitals’ expected increase in net patient revenues is 2.9 percent – lower than the 3.2 percent target the board set earlier this year.
In a statement issued Monday, the Vermont Association of Hospitals and Health Systems took note of that relatively low increase in projected revenues.
“These budgets reflect the commitment from Vermont hospitals to slow the growth in health care spending, while making significant investments in health reform initiatives that focus on quality care and patient outcomes,” said Jeff Tieman, the association’s president and chief executive officer.
But others have pointed out that the statewide revenue statistic is skewed by the fact that University of Vermont Medical Center – which accounts for nearly half of all hospital revenue – came in far below the care board’s growth target.
In fact, nine of the state’s hospitals exceeded the board’s target in their fiscal 2019 budget proposals.
“UVM is so big,” Fisher said. “So sometimes an average doesn’t capture the way things play out in different communities.”
The hospital association says budget variances reflect the fact that each health care facility “has a unique set of circumstances that informs its financial situation and outlook.”
“No two hospitals in our system are exactly alike, and each has a story to tell about how they are meeting the needs of their community,” Tieman said.
In addition to examining each hospital’s net patient revenues, the care board also will consider proposed rates – the prices that hospitals charge patients and insurers.
Overall, the state’s hospitals are seeking a 3.1 percent rate hike in fiscal 2019. That’s a bigger increase than has been proposed or approved over the past few years, but officials note that, over the long term, hospital rate increases have been declining.
Detailed information for each hospital is available on the care board’s budget-review webpage.
The board’s schedule for budget hearings is as follows:
• Monday, Aug. 20: 9 a.m. to 3 p.m. at the Pavilion Auditorium, 109 State St., Montpelier. Presentations are scheduled from Gifford Medical Center, Copley Hospital, North Country Hospital and Northeastern Vermont Regional Hospital.
• Wednesday, Aug. 22: 9 a.m. to 4 p.m. at Contois Auditorium at Burlington City Hall, 149 Church St. Northwestern Medical Center is scheduled for the afternoon, but most of the day is allocated to the University of Vermont Health Network – consisting of UVM Medical Center, Central Vermont Medical Center and Porter Medical Center.
• Monday, Aug. 27: 9 a.m. to 4 p.m. at Castleton University, 49 College Drive, Castleton. The hearing will be held at Campus Center, Room 1787. Presenting hospitals are Rutland Regional Medical Center, Brattleboro Memorial Hospital, Southwestern Vermont Medical Center and Grace Cottage Hospital.
• Wednesday, Aug. 29: 9 a.m. to 12:45 p.m. at the Pavilion Auditorium, 109 State St., Montpelier. Presentations are scheduled from Mt. Ascutney Hospital and Health Center and Springfield Hospital.
At each meeting, there is time allotted for public comment after a hospital’s presentation.
