The requested rate increase is part of the system’s proposed the fiscal year 2023 budget submitted to the Green Mountain Care Board, which works to regulate healthcare costs in the state. The system estimates the total cost of inflation for the fiscal year 2023 is $164.6 million.
The Burlington-based organization is facing significant financial challenges and has been forced to tap into its cash reserves to stabilize operating expenses, according to a statement from UVM Health Network CFO Rick Vincent cited by Vermont Business. It is implementing a series of initiatives to help stabilize its financial condition while continuing to work on improving patient experience and access to care.
“There is no question this is the most challenged financial position we have ever experienced in my 20 years in health care, and this budget reflects our commitment to do the hard work to stabilize our hospitals and protect critical services,” Mr. Vincent said.
The significant financial challenges are primarily driven by extraordinary expense inflation related to the cost of labor and revenue shortfalls.
The University of Vermont Health Network is an integrated system serving the residents of Vermont and Northern New York.
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