Burlington-based University of Vermont Medical Center, part of Burlington-based The University of Vermont Health Network, has temporarily paused construction on a $129 million outpatient surgical center.
The decision was taken to meet obligations set by the Green Mountain Care Board in an effort to decrease the budget for the new fiscal year, which started in October.
"These budget reductions are due in part to further budget reductions imposed by the Green Mountain Care Board related to increased patient demand for care that exceeded approved limits on the amount of care we provided last year," an Oct. 4 UVM Medical Center news release shared with Becker's said. "While planning related to the project may continue, active construction will be paused until next year at the earliest. This decision is an early step of a difficult, but necessary process to reduce our budget, which will impact our ability to deliver the care patients need."
UVM Medical Center sought approval for the certificate of need for the facility in February of 2023.
The hospital planned to break ground on the center this fall and open it to patients in mid-2026. However, the project delays will push the opening into 2027 "at the earliest," the release said.
The board's recent orders also cut the budget for two UVM Health Network hospitals, Berlin-based Central Vermont Medical Center and UVM Medical Center. Furthermore, the board also penalized UVM Medical Center for "meeting increased demand and providing more care to patients than was approved for the 2023 fiscal year."
"The cumulative impact of the board’s reductions on both hospitals and enforcement action on the care provided at UVM Medical Center created the need to cut approximately $122 million worth of patient care and support expenses for the current fiscal year — the equivalent of closing the health system’s Vermont hospitals for 17 days," the release said.
Owen Foster, board chair for Green Mountain Care Board, said in an Oct. 4 statement shared with Becker's that the board appreciates UVM's "thoughtful approach and understanding of the healthcare affordability crisis the state is in" and that the pause will help UVM continue to focus on its operations and fundamentals.
"I am optimistic they will be able to realize the surgery center at the right time," Mr. Foster said.
Editor's note: This story was updated Oct. 7 at 9:03 a.m. CT.