Vermont's chief regulator has decreased Vermont hospital budgets from the requested 6.4 percent system average rate increase to 5.9 percent. This will reduce operating revenues by $5.9 million. Individual hospital rate requests ranged from 4.0 percent to 8.8 percent. The requests totaled an increase of $100.7 million in operating revenues. Brattleboro Memorial Hospital asked for the biggest increase of 8.8 percent and also had the biggest adjustment, resulting in a revised rate increase of 7.1 percent. Several hospitals increases were not adjusted. North Country Hospital in Newport had the smallest increase, 4 percent, which was granted.
Paulette J. Thabault, Commissioner of Banking, Insurance, Securities, and Health Care Administration (BISHCA), announced the her decision on 2010 hospital budgets on September 15, 2009. Part of the department s mission is to help ensure that all Vermonters have access to affordable, quality health care.
In keeping with that mission, the Legislature recently reaffirmed BISHCA s charge to oversee hospital budgets. Hospitals were asked to do their utmost this year to limit costs to consumers and minimize the impact on insurance rates.
Commissioner Thabault said, The budget approval process is always a careful balance of concerns, but we know that hospital expenses make up roughly 40 percent of our health care costs, and those costs directly fuel insurance premiums. The hospitals testified about their budgets at public hearings held over a three-day period before Commissioner Thabault and the Public Oversight Commission (POC).
The Vermont hospital fiscal year for 2010 runs from October 1, 2009 through September 30, 2010.
The commissioner established the following rates for the FY 2010 hospital budgets:
The law requires that hospital budgets must be consistent with the Health Resource Allocation Plan adopted by the Governor on July 1, 2009; must compare to appropriate national, in-state, regional and peer group norms; must evidence efficient and economic operation of the hospital; and must reflect budget performance in prior years. The Commissioner considered the comments of the Public Oversight Commission and also evaluated the following factors:
Department targets for inflation and utilization increases, the numerous changes occurring in government and insurance reimbursement, pressures in the overall economy, hospital physician acquisitions, the challenges associated with recruiting medical professionals to Vermont, hospital investments in information technology, the need for operating margins, a hospital s budget performance in prior years, price, quality and patient satisfaction information, and the unique circumstances of each hospital.
Source: Vermont Division of Health Care Administration. 9.15.2009