Brattleboro (Vt.) Memorial Hospital has named Elizabeth McLarney, MD, and Tony Blofson, MD, acting co-CEOs while Christopher Dougherty is on a leave of absence, according to a news release shared with Becker’s.
Mr. Dougherty has served as the 61-bed hospital’s president and CEO since May 2022.
His leave comes as state regulators express concerns about BMH’s financial outlook, according to VTDigger.
“We are deeply troubled by the quality of BMH’s budget submission and its reporting because the hospital may be at risk of a sudden solvency crisis, which would potentially harm its community and the statewide system of care,” the Green Mountain Care Board wrote in an Oct. 1 budget order. Moreover, the board cited “missing, incomplete and inaccurate information” regarding the actual financial state of the hospital.
The order modified BMH’s proposed budget to include 0% growth in net patient revenue, subject to certain conditions, and approved BMH’s commercial reimbursement rate at not more than 2.4% over current approved levels. The order also requires the hospital to resubmit corrected and accurate operating results for fiscal 2024 and 2025.
The board’s Oct. 1 budget order came two days before BMH announced Mr. Dougherty’s leave of absence internally.
The board added that it believes the hospital’s leadership “must make big strides to adjust course.” Mr. Dougherty couldn’t be reached for comment by VTDigger.
In an Oct. 6 news release, the hospital said Dr. McLarney, an orthopedic surgeon with BMH Orthopaedics and Sports Medicine, and Dr. Blofson, a primary care physician with BMH’s Maplewood Family Practice, have 50 years of combined service and dedication to the hospital, and they are highly respected physicians in the community and among their peers.
BMH’s board of directors also conveyed its confidence that Drs. McLarney and Blofson “will do an exceptional job guiding our organization during this interim period. They have a firm grasp of the hospital’s day-to-day operational needs and a solid understanding of our regulatory challenges.”
Earlier this year, BMH had laid off six administrators in an attempt to gain $4 million from less spending and new revenue to balance its $119 million annual budget.
Read the full budget order here.
