VAHHS and Hospital Leaders Seek GMCB Support for ‘Recovery Budgets’as Part of Annual Hospital Budget Review

For Immediate Release
August 8, 2023

Contact: Beth Esmond
802-343-9074
communications@VAHHS.org

Hospital leaders highlight challenges and opportunities as they invest in measures to manage expenses, address ongoing staff shortages, inflation pressures and seek to recover from years of negative margins

Montpelier, VT – The Vermont Association of Hospitals and Health Systems (VAHHS) urged the Green Mountain Care Board (GMCB) to approve hospital budgets as submitted ahead of the annual hearings before the regulatory body beginning this week. Hospitals are calling their FY2024 budget requests “recovery budgets,” as they continue to manage unprecedented pressures including staffing shortages, inflation and increased patient care needs. The hearings will take place over two weeks.

“I am proud of the work our non-profit hospitals continue to do to keep health care costs down, even as the cost of labor, equipment and supplies continue to rise with no end in sight,” said Mike Del Trecco, President and CEO at VAHHS. “These budgets are responsible and compassionate and represent only what is needed to protect our staff and care for patients.”

This year, system-wide hospitals are asking for budget approval that produce an average margin of just two percent. Because hospitals are non-profits, any margins they achieve are reinvested in staffing, equipment, supplies and in the communities in which they operate. Over time, the GMCB has approved budgets at or below medical inflation, resulting in budgets that do not adequately grow to meet the rising costs of service. This means many of Vermont’s hospitals are operating with no resources for those critical reinvestments—leading to hiring freezes, delayed purchases of equipment and delayed repairs to facilities. This is not only unsustainable; it is also dangerous.

“Over the next couple of weeks, our hospitals will tell their unique stories of the challenges they continue to face and the myriad ways they are rising to meet this moment to deliver great care to Vermonters and help their communities thrive. It is crystal clear these budgets reflect the values we share as Vermonters and our hope is that the GMCB will approve them as submitted, Del Trecco added.

You can follow the process and learn more about the hearings, which begin on Wednesday, August 9, by visiting: Hospital Budget Review | Green Mountain Care Board (vermont.gov). Learn more at VAHHS.org

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