Vermont hospital budgets will increase by a system-wide total of 3.8 percent for fiscal year 2012 beginning October 1, 2011, after excluding this year’s increased taxes on hospitals, according to individual hospital budgets approved today by Banking, Insurance, Securities and Health Care Administration Commissioner Steve Kimbell.
‘Compared to the average annual system-wide increase of 7.2 percent over the span of the past five years, the rate of increase is definitely moving in the right direction,’ said Kimbell.
Budgeted increases ranged from $1,193,974 for Gifford Hospital to $43,324,991 for Fletcher Allen. Meanwhile, Mt Ascutney Hospital's budget shows a decrease of -$1,465,403. The approved system-wide rate increase last year was 5.44 percent.
Information about individual hospital budgets is below. Also included are the FY 2012 and 2011 budgets.
Kimbell noted that the government payers are bearing their fair share of the increase this year. ‘One of the ways to reduce pressure on commercial health insurance premiums and bring fairness to the system is to reduce the cost shift growth that historically has been the result of underpayment by government programs.’
The system wide increase of 3.8 percent was achieved without using several exclusions, other than new taxes, allowed by the 2009 legislation that created a 4% target for increased hospital revenues for the upcoming budget year. For example, if the cost of existing physician practices acquired by hospitals is excluded, the system wide increase is 2.7 percent.
Kimbell noted that that this is the last year for the budget process that has been in use since 1983. The newly appointed Green Mountain Care Board is charged with revamping that process. Changes likely will include standardization of some budget components among hospitals and movement toward a global budget for the system.
Information about individual hospital budgets is attached.
FY 2012 Budget Submissions
A
B
C
D
BUD 12 Net
Patient
BUD 12 Net
BUD12
Revenue
Patient Revenue
BUD 12 Net
Net Patient
Increase adj
Increase adj for
Patient Revenue
Revenue
for provider
provider tax &
Increase in $
Increase
tax
Physician Acq
Fletcher Allen Health Care
$43,324,991
Grace Cottage
7,6%
Grace Cottage
7,1%
Grace Cottage
7,1%
Rutland Regional Medical Ctr
$10,392,423
Copley Hospital
7,1%
Copley Hospital
6,0%
Copley Hospital
4,8%
Central Vermont Hospital
$7,434,697
Northwestern Medical Ctr
6,8%
Northwestern Medical Ctr
5,8%
North Country Hospital
3,9%
Southwestern VI, Medical Ctr
$5,830,545
Brattleboro Memorial
6,6%
Brattleboro Memorial
5,6%
Northwestern Medical Ctr
3,7%
Northwestern Medical Ctr
$5,158,889
North Country Hospital
6,0%
North Country Hospital
5,2%
Fletcher Allen Health Care
3,2%
North Country Hospital
$4,493,465
Rutland Regional Medical Ctr
5,5%
Rutland Regional Medical Ctr
4,7%
Southwestern VI, Medical Ctr
3,2%
Brattleboro Memorial
$4,134,377
Central Vermont Hospital
5,0%
Porter Hospital
4,2%
Central Vermont Hospital
2,4%
Porter Hospital
$3,084,292
Porter Hospital
4,9%
Central Vermont Hospital
4,0%
Springfield Hospital
2,2%
Gifford Memorial
$1,193,974
Fletcher Allen Health Care
4,7%
Fletcher Allen Health Care
3,9%
Rutland Regional Medical Ctr
1,9%
Northeast VI, Regional
$1,272,808
Southwestern VI, Medical Ctr
4,4%
Southwestern VI, Medical Ctr
3,7%
Porter Hospital
1,6%
Springfield Hospital
$1,584,030
Springfield Hospital
3,0%
Springfield Hospital
2,2%
Northeast VI, Regional
1,4%
Copley Hospital
$3,536,882
Northeast VI, Regional
2,1%
Northeast VI, Regional
1,4%
Gifford Memorial
1,0%
Mt Ascutney Hospital
-$1,465,403
Gifford Memorial
1,9%
Gifford Memorial
1,0%
Brattleboro Memorial
0,9%
Grace Cottage
$1,281,525
Mt Ascutney Hospital
-3,0%
Mt Ascutney Hospital
-3,4%
Mt Ascutney Hospital
-4,4%
System
$91,257,495
System
4,6%
System
3,8%
System
2,7%
Notes:
The increase is measured against FY 2011 approved budget levels,
Column B reflects the total requested net patient revenue increase,
Column C reflects the increase if the provider tax increase is not counted,
Column D reflects the increase without including physician service increases, Those are not considered
as growth since the services were provided outside the hospital budget in the prior year,