Earlier this week, state regulators ordered Vermont’s second-largest hospital to make up for the expected multi-million dollar deficit without raising it.
Dust was barely settled in the decision on Friday morning, but the reality was already directed to the CEO of the Rutland Community Medical Center. Reflecting Wednesday’s fateful Green Mountain Care Commission decision, CEO Claudio Fort couldn’t help feeling that the regulators didn’t receive the message.
“We really tried to say,’Hey, there’s a story here, there’s a rule here.’ I feel that the challenge for us is unheard of, “Fort said.
Rutland Jonal demanded a 9% increase in tariffs in the middle of the year to cover inflation and the surge in labor costs, but the Careboard rejected it because it would affect small businesses.
In three hearings over the past few weeks, Rutland executives warned that refusing to raise prices could significantly reduce the services required. They argued that immersing themselves in the hospital’s $ 261 million reserve would jeopardize the hospital’s long-term financial stability.
On Friday, Fort softened his reputation. Executives are ready to immerse themselves in reserves, he said, but they are also considering reducing some services, though not immediately. The price increase would have given the hospital a “breathing room,” but he showed that the Rutland area was ready to do without it.
“Rutland Regional has a loss of $ 7.5 million, so there’s no need to close doors or stop service,” Fort said. “That’s not what we are doing.”
In the hospital world (profit or non-profit), deficits often precede reductions in loss leader services such as mental health and delivery. For example, Springfield Hospital recently abolished the delivery unit after breaking out of bankruptcy.
But Fort emphasized that Rutland Hospital is much better, although measures to tighten the belt may be imminent. He vowed to take into account patient and community implications when reducing costs.
Rutland Hospital executives have already stated that they plan to abolish staff retention and shift bonuses in the near future. This bonus was designed not only to reward current staff, but also to reduce reliance on temporary staff.
Hospitals could shrink or abandon plans to help employees find housing, Fort said.
According to Fort, hospital leaders are still embodying their plans, and it’s still unclear which services need to be rolled back and how many services need to be delivered. do not have.
Rutland Regional wasn’t the only one requesting a price change. The University of Vermont Health Network, the state’s largest hospital operator, also came out in front of the Green Mountain Care Board this week calling for a 10% increase in rates for two hospitals, the UVM Medical Center in Burlington and the Central Vermont Medical Center in Berlin. I did.
The board will vote for the UVM Health Network’s request as early as next week.
The rest of the state’s non-profit hospitals are all small and have not made similar requests so far. The deadline for applying for mid-term budget adjustment is May 1.
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