Despite inflation and spikes in health care costs, executives at small hospitals in Vermont say they plan to keep service fees constant.
Changes in hospital prices in the middle of the year have the greatest impact on private insurance companies and their subscribers. If the Green Mountain Care Board allows the hospital to raise the price of the service, the private insurance company will start paying almost immediately. Consumers are aware of the impact of higher premiums the following year.
When asked to comment this week, more than half of the representatives of the state’s 14 nonprofit hospitals said they would not ask state regulators to raise mid-year. The three hospitals did not respond to requests for comment.
So far, only the state’s larger hospitals (Rutland Community Medical Center, University of Vermont Medical Center in Burlington, Central Vermont Medical Center in Berlin) have submitted rate adjustment requests to the Green Mountain Care Commission. A spokesperson for the board confirmed on Friday morning that other hospitals had to submit until May 1, but did not submit a mid-year request.
Rutland Regional has demanded a 9% increase in service fees due to its projected $ 7.5 million deficit this year. The University of Vermont Health Network has asked the Green Mountain Care Commission to raise service charges for Burlington and Berlin hospitals by 10%, as it expects a $ 44 million deficit this year.
In addition to the immediate increase, UVM Health leaders also said they would seek a higher-than-normal commercial rate increase next year.
The Board has not yet made a decision on the Rutland Regional or UVM Health requirements.
The three requesting hospitals serve a significant portion of Vermont’s population, and higher prices can lead to spikes in state health insurance prices. Two of the three hospitals ended the fiscal year last year with a surplus from operations, according to a submission to the Green Mountain Care Commission.
The UVM Medical Center closed fiscal year 2021 with operating income of $ 36.5 million and an overall surplus of $ 119 million. Its sister hospital, Central Vermont Medical Center, reached the end of the year with an operating deficit of $ 1.6 million and an overall surplus of $ 27 million.
During the same period, Rutland Jonal had a surplus of $ 7 million from sales and a total surplus of $ 35 million.
Hospitals have attributed their positive margins to previous state and federal aid they have since exhausted. Rutland Regional executives said the expected deficit could lead to painful reductions in critical services without further support.
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