Vermont Business Magazine The Green Mountain Care Board today praised Vermont's hospitals for achieving historically low rates of growth in their budget submissions for the third year in a row, submitting budgets with 3.6 percent overall net patient revenue growth. The GMCB also highlighted the proposed aggregate 4.3 percent weighted average rate increase for fiscal year 2016 – an indicator of prices passed on to consumers – which is the lowest in the last 15 years.
“Both of these numbers are important indicators of the hard work that all of our hospitals are doing to keep costs down, and to reduce costs to Vermonters,” said VAHHS CEO and President Bea Grause.
The initial submission of 3.6 percent growth for 2016 follows last year’s growth rate of 2.7 percent, the lowest in 40 years.
Board Chair Al Gobeille acknowledged the “tremendous amount of work” by Vermont’s hospitals to achieve the low rates of growth. Both Gobeille and Grause pointed to the work ahead.
The initial submission of 3.6 percent growth follows last year’s growth rate of 2.7 percent, the lowest in 40 years.
Governor Shumlin also praised the hospitals.
“What’s happening in Vermont is happening nowhere else in America. For the third year in a row, Vermont hospitals have submitted budgets with historically low growth rates. From 2001 to 2011, the average budget increase for Vermont hospitals was 6.8 percent. Since 2011, budget increases have averaged only 2.6 percent. This is not a blip; this is a trend, and it is thanks to the hard work of the Green Mountain Care Board and Vermont hospitals to bend the cost curve on health care spending. Continuing our work to control health care costs is one of the most important steps we can take to increase affordability and make Vermont's economy work for every single Vermonter.
"Combined with the fact that through Vermont Health Connect and the Affordable Care Act we have been able cut our uninsured rate in half from 6.8 percent to 3.7 percent, today’s news shows that health care reform in Vermont is working and making a difference for individuals and families," Shumlin said.
“Responsible budgeting is a central part of reducing costs and maintaining access to quality care for Vermonters,” Grause said. “We will continue to work with the Green Mountain Care Board, state of Vermont, federal government and other key partners to make the changes necessary to guarantee quality, affordable care for every Vermonter.”
Vermont's hospitals submitted budgets to the board early in July, and the board’s review includes a series of public hearings before voting on the budgets in September. The fiscal year for Vermont’s hospitals begins October 1.
Net patient revenue includes payments hospitals receive from patients, government and insurers for patient care, but not revenues from other activities such as cafeterias and parking.
