NATIONAL HEALTHCARE CRISIS HITS HOME | OUR SIGNIFICANT CHALLENGES | THE PATH FORWARD
Our financial health
A nationwide financial crisis hits home
Hospitals and health systems across the country are struggling. High labor costs, rapidly increasing inflation and COVID-19 have left an extraordinary financial impact. Given the persistence of these challenges, the majority of the country’s nonprofit hospitals on average continue to lose money. This unsustainable national and local trend is impacting services, the stability of operations and the ability for people to get the care they need.
The UVM Health Network’s financial condition has felt the impact of this challenging landscape.
We’ve reached a critical juncture—a place requiring system wide changes to further minimize costs and increase revenues while continuing to deliver high-quality care. A place where thinking differently to find solutions is not only a need but a must.
There is no question this is the most challenged financial position we have experienced in my 20 years in health care.”
—Rick Vincent, Chief Financial Officer, UVM Health Network
This is a critical time for us and for our region. Decisions made today will have a profound impact on the strength and resilience of our health care system for years to come. We know the cost of health care is already high, and we develop our budgets with a commitment to do what we can to keep costs down, protect essential partnerships within our communities and maintain ongoing support for our health care providers and our staff.”
—Rick Vincent, Chief Financial Officer, UVM Health Network
We’re not out of the woods yet.
Our final, Green Mountain Care Board approved fiscal year 2023 budgets forecast only enough revenue necessary to cover operating expenses and produce a modest margin, used to invest in our workforce and update equipment and facilities while continuing to provide the highest quality care.
The Board approved these budgets but with lower rate increases than we requested. While the rate increases granted by the Board are significant and a help, they are not enough to fill the gap. That’s why we are taking on this work as part of The Path Forward to avoid drastic steps. Otherwise, without traction, our financial situation will not improve, putting our patients and our health system at risk.
This has been a financial crisis years in the making and it will likely take years to recover.
The financial health of the UVM Health Network has deteriorated significantly since 2017, as demonstrated with these graphs. The first step in changing course is to stabilize finances without risking the critical services that patients across our region depend on, which is what our financial improvement initiatives and budget proposals intend to accomplish. With skillful implementation on our part and support from state and federal agencies, we believe we will succeed.
Our focus on continuing to improve outcomes while lowering health care costs continues. We are working to accomplish this by shifting toward prevention, partnering with our patients to focus on health and wellness, as opposed to a health care system that is focused primarily on treating people when they are sick. We’ve made great progress, and if we are to achieve the vision of improving the health of our communities, we must be able to cover the cost of providing care. This is the path forward to our ability—now and in the future—to make the necessary investments in staff, technology and facilities to transform health care.