The Green Mountain Care Board unanimously approved Springfield (Vt.) Hospital's proposed $55 million budget for fiscal year 2021, despite the hospital's recent financial problems, Valley News reported Nov. 8.
The hospital filed for bankruptcy in 2019 but has been recovering. In fiscal year 2019, the hospital had a $9.6 million deficit. In fiscal year 2021, those losses decreased to $1.8 million.
Demand for hospital beds has increased recently because of the delta coronavirus variant surge. The budget was approved with the expectation that the demand for beds will continue and that there will be a $2 million boost from an 8.3 percent rate increase for commercial insurers and a $2.7 million boost from an increase in Medicare reimbursement.
CEO Robert Adcock said he believes the net patient revenue will grow from $46.8 million in fiscal year 2020 to $54.7 million in fiscal year 2021.
Despite approval, some on the board are still concerned about Springfield's sustainability, worrying that the high demand for hospital services will not continue in the long term, the article said.