by Mike Del Trecco, CEO VAAHS
As I reflect on 2025, one thing that comes clearly to my mind is the realization that Vermont has been very good to me and my family. It has been a special place for my wife Donna and me to raise our family. We have been blessed with great friends, the freedom and the beauty of our lakes and mountains and the safety that Vermont offers to its people. For all of its challenges, and readers here know I talk a lot about our challenges, it is also the greatest place in the world to live. At least if you ask me.
I am proud to lead VAHHS alongside a dedicated team, and deeply fortunate to work with hospital leaders, clinical teams, and support staff across our state. The gift of the holidays is special, but it’s important to note that this gift is not seasonal for health care; in fact it is present every day in our hospitals. Patients are healed through lifesaving care; premature babies go home for the first time; and sometimes it is as simple and profound as a nurse sitting quietly with a patient who doesn’t want to be alone. These moments are the essence of our work. Our lights are always on, our doors always open, and there are always unexpected moments of hope and generosity. While much of the world slows down over the holidays, hospitals remain places of constant motion, skill, compassion, and hope.
Our health care delivery system is impressive, but like so many things in Vermont—like education and housing to name a couple —we have some serious challenges too. The crux of the issue is that we cannot afford the system we have today, and to adapt, we must change where, when and how we deliver. And we have to do this while ensuring access and quality are maintained and even improved. This is a huge challenge, but Vermont hospitals, their community boards and teams are meeting the moment with action. In 2025, hospital leaders, along with the legislature, Agency of Human Services (AHS) and the Green Mountain Care Board (GMCB) leaned in to make health insurance premium cost more affordable. Three direct actions were taken:
- Hospitals submitted budgets that met GMCB guidance to lower expenses.
- The legislature passed bills that focused on hospital cost controls; and
- Hospitals enacted an Affordability Action Plan that is focused on efficiency and transformation all to save money for Vermonters.
When all is said and done, these efforts will save Vermont well over $300 million and have put hospitals on a path towards running at optimal efficiency. We should all be very proud of this work, collectively we will have met the savings goals outlined in Act 167 two years ahead of the target date. It’s a critical first step, but there is much more to do to get where our state needs to go. The fact is that savings of this magnitude are not repeatable if we are to sustain services across our rural state. As you’ve likely heard me say before, we cannot cut or transform our way to affordability, and it is clear that one-time gains will not solve long-term problems.
To get to affordability, the Vermont that I love and that has been so kind to me and my family needs a strategy to grow and grow quickly. We need more workers to fill jobs, more people to volunteer and serve in our communities, and more kids in our schools to bring vitality back into the rural corners of our state. This vibrancy includes thousands of healthy modern homes, thriving schools, economically and socially strong communities and so much more. I think you get where I am going here— even if we get healthcare perfectly right, and that will be very hard to do, we will likely not achieve the affordability we seek. A key ingredient to this simple math problem is intentional and sustainable growth.
I can assure you that hospitals will continue to lean in to be as cost effective as possible and we will work to identify opportunities to streamline, move or share services where and when appropriate because that’s the way we can help our state become more affordable.
I want to thank you for the trust you place in our hospitals. The work of the past year continues to remind me how deeply connected we are to one another, to our caregivers, and to the friends and families who share a common commitment to strengthening our communities. Looking ahead to 2026, I am confident in our direction and encouraged by our collective resolve. This is truly an all-hands-on-deck moment, and I remain open, available, and eager to hear your ideas and perspectives. Together, I believe the outcome of this work will be meaningful, lasting and powerful for Vermont.
I wish you all a heartfelt holiday season and a happy, hopeful New Year.