‘Here we are two years out and everyone’s overwhelmed at a cost that’s way beyond what anybody had envisioned,’ Green Mountain Care Board Chair Kevin Mullin told hospital leaders.
The network blamed the shortfall, which came as a surprise to regulators, on additional costs for a new health records system and on the unexpected closure of operating rooms at Fanny Allen.
Experts say if the rest of the country is any indication, probably yes.
The state’s largest psychiatric facility is considering reducing its capacity after state officials said they won’t provide the facility with $2 million in cash.
The approval comes with conditions, including greater transparency and accountability. The board urged patience in allowing time for the experiment to work.
The state could face corrective action from the federal government if spending exceeds 4.3%.
Lawmakers called in executives and experts to discuss the question: How much should Vermont taxpayers foot the bill for the state’s health care reform efforts?
The state office found the lack of data leaves regulators — and Vermonters — unable to be sure whether the programs are actually working.
The company, which is supposed to save the health care system money, has posted losses.
The Green Mountain Care Board issued guidance encouraging hospitals to keep revenue growth under 3.5%. It ended up approving a 4.3% hike in revenues.
The governor told the Green Mountain Care Board that the high cost of health care is the problem, not Medicaid spending.
The $1.35 billion budget is $75 million more than the spending approved last year, and well over the 3.5% cap advised by the board earlier this year.
Would the money save hospitals, or OneCare Vermont?
Pitching its budget before the Green Mountain Care Board, Mike Halstead said the hospital is ‘living pretty much on the edge.’