The Green Mountain Care Board will let Burlington-based University of Vermont Health Network spend $12 million in excess revenue from fiscal year 2015 on public benefit programs, according to VT Digger.
In late March, John Brumsted, MD, CEO of UVM Health Network, and the system's CFO Todd Keating, appeared before the Green Mountain Care Board, which regulates hospital budgets, and acknowledged the system's hospitals exceeded their FY 2015 revenue targets.
Under Vermont law, the Green Mountain Care Board is in charge of controlling the rate of growth in healthcare costs. The board attempts to curb cost growth by limiting the amount of money hospitals can receive from patient services.
Dr. Brumsted estimated the hospital network took in $29.1 million more than it should have in FY 2015. He said the excess revenue is attributable to higher patient volume at the network's facilities, including its new Vermont ExpressCare locations.
Dr. Brumsted said the system wanted to give $12 million in excess funds to various community organizations and use $3 million to cover the cost of setting up an "all-payer" model in Vermont.
After a two-hour discussion Thursday, the Green Mountain Care Board accepted UVM Health Network's proposal to give $12 million in excess revenue to community organizations but rejected the system's proposal for the additional $3 million.
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