Burlington-based University of Vermont Health Network has offered to spend extra revenue from fiscal year 2015 on public benefit programs, according to a VT Digger report.
On Thursday, 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.
"We propose to address this departure from the approved (patient care revenue) levels through reductions as well as investments tied to our network's commitment to improving people's lives through population health management," Dr. Brumsted told the Green Mountain Care Board.
Under the system's proposal, $6 million in excess revenue would go to various substance abuse and dental health initiatives and $3 million would help cover the cost of setting up an "all-payer" model in Vermont.
The system proposed spending the remaining funds as follows:
- Champlain Housing Trust — $3 million
- Washington County Mental Health — $1 million
- Howard Center in Burlington — $1.5 million
- UVM Medical Center's Community Health Investment Committee — $500,000
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