UVM to cut services, up to 200 jobs: 8 things to know

Burlington-based The University of Vermont Health Network has shared plans for significant clinical services and administrative reductions in response to Vermont budget cuts issued by the Green Mountain Care Board.

Here are eight things to know:

1. The measures aim to address a mandated $122 million revenue reduction amid rising patient demand, and come after UVM Health's Burlington-based University of Vermont Medical Center was forced to temporarily pause construction on a$129 million outpatient surgical center in late October. The medical center also alleged in late October that GMCB's enforcement action would force the hospital to cut support services and patient care.

2. Under these reductions, which are expected to take place both immediately and over the next few months, up to 200 jobs are expected to be affected across UVM Health, according to a Nov. 14 news release shared with Becker's

3. UVM Health will close its renal transplant program and redirect patients needing surgeries to Lebanon, N.H.-based Dartmouth Health. Kidney dialysis clinics outside UVM Health's service area will be passed on to other providers, which could potentially affect 115 patients. Newport, Vt.-based North Country Hospital, St. Albans, Vt.-based Northwestern Medical Center and Rutland (Vt.) Regional Medical Center are in discussions with UVM Health to ensure dialysis care is maintained in areas that need it. 

"This process is still in its early stages and will ultimately require regulatory approval," UVM Health, NMC, Rutland Regional and North Country said in a Nov. 20 joint statement shared with Becker's. "Collectively, we are hopeful the GMCB will recognize this important need and support our hospitals in transitioning the care in a way that balances the needs of our organizations with the needs of our patients. We must be assured that we can reasonably fund and support under the limitations placed on us by the GMCB."

4. Berlin, Vt.-based Central Vermont Medical Center's psychiatric unit will also close under the plan, with rehabilitation and family medicine services being consolidated to cut costs. The unit has a daily census of around eight patients.

5. UVM Medical Center will limit non-emergency patient transfers and overnight stays to comply with GMCB's orders.

6. UVM Health will also cut more than $18 million in administrative expenses by reducing open positions, current employees and other expenses.

7. While UVM Health has presented legal appeals to challenge the GMCB orders, the system is complying, but stresses that there will be long-term impact to affordability and health equity for residents in Vermont. 

8. "These are not decisions we wanted to make because we know they impact patient care at a time where people need greater access to services," Sunny Eappen, MD, president and CEO of University of Vermont Health Network, said in the release. "We are taking every step we can to prevent deeper cuts, and we will be transparent throughout this process. The truth, however, is rebuilding from the impact of these actions will take an extraordinarily long time, even if we succeed in the courts."

A spokesperson for GMCB said in a Nov. 14 statement with Becker's that their board was not consulted with and did not approve the reductions that UVM Health has brought forward. The board is reaching out to better understand the rationale behind the decision, and is committed to reviewing the decision and discussing if alternative options are available. The board also approved around $1.9 billion in budget for UVM Health's fiscal year 2025, a $64 million increase over the fiscal year 2024 budget. 

"The GMCB’s budget and enforcement orders identified opportunities where UVMMC could improve access and affordability, including by using its administrative infrastructure and large network to move care out of an expensive hospital setting to more appropriate care settings," the statement said. 

Editor's note: This story was updated Nov. 20 at 10:50 a.m. CT.

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