Vermont hospital budgets will increase by a system-wide total of 3.8% for the fiscal year beginning October 1, 2011
Vermont hospital budgets will increase by a system-wide total of 3.8% for the fiscal year 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% over the span of the past five years, the rate of increase is definitely moving in the right direction,” said Kimbell.
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% 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%.
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.
Specific questions about the budgets should be directed to Mike Davis, Director of Hospital Regulatory Operations at 828-2989.
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