Amid a tumultuous period in health care, Vermont hospitals request annual revenue and rate increases
VTDigger
Vermont hospitals are seeking the Green Mountain Care Board’s permission to increase commercial insurance charges and their revenue from patients, an annual process that comes amid widespread concern over hospitals’ financial health.
Each year, hospitals request increases for the next fiscal year in their net patient revenue — revenue brought in by caring for patients — and in how much they can bill commercial insurance companies for that care. The Green Mountain Care Board, a key health care regulator, can sign off on those requests, or allow smaller increases.
The board sets non-binding benchmarks to signal their goals for hospital budgets. For patient revenue, the benchmark — 3.5% growth — is based on state health care reform goals. The commercial insurance price benchmark — 3.4% growth — is based on medical inflation indices, according to Green Mountain Care Board chair Owen Foster.
“As we are all deeply familiar, our hospitals have been under great pressure over the last few years, and intensely understand the pressures facing Vermonters and the health care delivery systems,” Vermont Association of Hospitals and Health Systems president and CEO Mike Del Trecco said at a Green Mountain Care Board hearing Wednesday.