Rutland (Vt.) Regional Medical Center will pilot a global budget payment system with Vermont's new healthcare board, according to a VTDigger report.
The board of Green Mountain Care, which is the state's new healthcare system that will eventually lead to single-payer, has agreed to test the global payments with Rutland Regional. The global payments will include predetermined, fixed payments to Rutland Regional based on its historical revenues.
Tom Huebner, CEO of Rutland Regional, told VTDigger the global budget system will "align incentives in a way that drives unnecessary utilization out of the healthcare delivery system, but also allows the healthcare delivery system to survive."
As of right now, Rutland Regional will be the only hospital working with GMC on the pilot, starting this October. However, other hospitals like Southwestern Vermont Medical Center in Bennington have shown interest in the system, but they are uncertain how the payments would work with their bases, which include many out-of-state patients, according to the report.
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