Burlington-based University of Vermont Medical Center faces state inquiry for reporting revenue of $24.5 million more than budgeted in 2016, according to a Burlington Free Press report.
Under Vermont law, a state body — the Green Mountain Care Board — is in charge of controlling the rate of growth in healthcare costs by limiting the amount of money hospitals can receive from patient services. The Green Mountain Care Board requires an explanation from hospitals exceeding their target revenues by more than 0.5 percent. UVM Medical Center reported revenue roughly 2.2 percent higher than it budgeted last year.
It is unclear whether UVM Medical Center will take action to address the surplus, the report states. The medical center primarily attributed the excess revenue to increased patient volume, more patients covered by Medicaid or other health insurance and a $7.8 million decrease in charity care and bad debt.
Green Mountain Care Board officials heard six presentations from the hospital Tuesday, Burlington Free Press reports. Members will vote on the budget review April 13.
Last year UVM Medical devised a plan to spend its roughly $29 million extra revenue from fiscal 2015 on reducing commercial insurance rates, community programs and a housing project.