Vermont Business Magazine The Green Mountain Care Board (GMCB) today released financial performance information for the state’s not-for-profit hospitals as part of their annual budget review process. From 2016 to 2017, Vermont’s hospitals contained growth in net patient revenue to just 2.8 percent, significantly lower than annual increases of nearly 9 percent a decade ago. Net patient revenue targets are set by the GMCB each year and account for revenue hospitals collect from delivery of patient care before accounting for any expenses.
Vermont Association of Hospitals and Health Systems said in a statement that this historically low budget growth is the result of disciplined budgeting, a focus on operational efficiencies and efforts to address cost drivers such as chronic disease, misuse of emergency services and extended stays.
“Every day Vermont hospitals are delivering top-quality care, investing in health care reform, and supporting community efforts to improve quality of life, all while controlling health care spending and system-wide growth,” said Jeff Tieman, VAHHS President and CEO. “This is vitally important work because we know that for too many Vermonters, health care costs remain too high.”
In the fall of 2016, the GMCB approved budgets that set a target of $2.42 billion in total net patient revenue for all of Vermont’s hospitals in fiscal year 2017. Last year hospitals earned actual net patient revenue of $2.45 billion, surpassing the target by $23.7 million, or about 1% of the total. It is important to note that the reasons for each hospital’s specific budget-to-actual filing is as unique as they are.
“We are pleased that Vermont’s hospitals came so close to the target set by the GMCB, while managing significant challenges such as caring for our aging population, the mental health crisis, the opiate epidemic, and ongoing federal uncertainty,” Tieman said. “At the same time, we know there is more work needed to make health care more affordable, which is why we are investing in wellness, prevention and population health.”
Source: VAHHS 2.14.2018. For more information about the GMCB’s hospital budget process visit: http://gmcboard.vermont.gov/hospital-budget