Dear ,
Today, University of Vermont Health Network is announcing difficult news: We are moving forward with reductions in administrative expenses and patient care as a direct result of actions taken by our regulator in Vermont, the Green Mountain Care Board (GMCB). These cuts will impact our patients as well as our employees, and we believe these actions will not make care more affordable, as many Vermonters will have to travel further and further to receive the care and services they need.
This is the opposite of what we want to be doing at a time when the health care needs of the people in our communities is increasing and becoming more complex. For all of us across our health system, this is a painful day. Our patients are our friends, families and neighbors – we are honored to count so many of you among them – and everyone who is a part of our health system plays an important role in the work we do together.
This is also the wrong direction for Vermont and for our region. We know in order to make health care more affordable, we need to have a strong health care system that can help attract more people to live, work and raise a family here.
But we have no choice, because the GMCB has significantly cut the budgets of two of our Vermont hospitals, University of Vermont Health Center and Central Vermont Medical Center. For the first time, the GMCB also penalized University of Vermont Medical Center for responding to the needs of its patients by providing more health care than had been approved for last year, even though we lost money providing that extra care. The cumulative impact of these orders is a $122 million reduction in the revenue we can receive this year – in health care, “revenue” means patient care.
The steps we are announcing today – some of which will take effect now, and some in the months ahead – are the result of a careful and consistent process we’ve undertaken to comply with the GMCB orders:
- Reduce the number of patients who stay overnight at University of Vermont Medical Center from approximately 450 to 400 and limit regional incoming non-emergency patient transfers.
- Eliminate Surgical Renal Transplants at University of Vermont Medical Center and collaborate with Dartmouth Health on care alternatives. University of Vermont Medical Center performed approximately a dozen kidney transplants this year.
- End University of Vermont Health Network staffing and operation of kidney dialysis clinics outside of our primary service areas in Vermont, impacting approximately 115 patients across three clinics.
- Consolidate locally some Family Medicine and Rehabilitation clinics that are part of Central Vermont Medical Center (CVMC), which should not impact access to CVMC-run primary care services for existing patients.
- Close the Inpatient Psychiatric Unit at CVMC, which has had an average daily census of approximately eight patients.
- Cut more than $18 million in administrative expenses, with reductions in expenses, open positions and employees.
We expect the total impact on the reductions above to affect as many as 200 people who serve the health system, including both our staff and temporary/travel staff.
These actions are in addition to our previous decision to delay construction of a new Outpatient Surgery Center in South Burlington. More information about the steps we are taking is available here. We will work proactively to contact and do our best to support patients who are impacted, and we are working to support our colleagues who are facing job change or job loss as well.
These are the impacts we know of now. We will vigorously monitor our progress, which will inform any additional steps we may need to take in the near or longer term, both to comply with the current GMCB orders and any other actions thy may take in the future. We have also taken legal action in an effort to seek relief from the impact of the GMCB orders.
However, we want you to know that in spite of all these challenges, our commitment to provide the best health care possible will not change.
We know health care costs too much. We can’t solve that by ourselves, and we are committed to doing everything we can – and working with every partner we have – to control cost growth. Meanwhile, we believe these orders will make care less affordable and less accessible for those in need.
And we are going to continue to take the steps that are necessary for our health system to be strong and stable, not only for today but also for years to come, for all of the people who trust us with their health and rely on us for the care and services they need.
The health care we provide – across Vermont and northern New York – is life-changing and lifesaving. It is necessary. If you feel the same way, please support us by spreading the word. Tell your legislators, or email the governor’s office, or write to the GMCB directly. You can also reach out to us at CommunityRelations@uvmhealth.org.
Thank you for your leadership and your partnership in support of greater health and vitality for the Vermonters we serve.
Sincerely,
Sunny Eappen, MD, MBA
President and Chief Executive Officer, University of Vermont Health Network
Anna Noonan, RN, BSN, MS
President and Chief Operating Officer, Central Vermont Medical Center
Bob Ortmyer
President, Porter Medical Center
Stephen Leffler, MD
President and Chief Operating Officer, University of Vermont Medical Center
