This commentary is by Julie Wasserman of Burlington, an independent health policy consultant who worked for Vermont state government for over 25 years.
The University of Vermont Health Network just concluded a remarkable year. In 2024, the Network had $259 million in “excess of revenue over expenses.”
With this level of available cash, how believable is it that UVMHN “needed” to cut services critical to Vermonters? The Network will eliminate its inpatient psychiatric unit at Central Vermont Medical Center; offload dialysis programs in Newport, Rutland and St. Albans; close a primary care clinic in the Mad River Valley; and decrease the number of UVM’s hospital patients.
Other gold-standard hospitals have handled the situation differently. When Mass General Brigham recently faced the imperative to control costs, it reduced administrative and management positions.The Boston Globe has reported that Jennifer Street, senior vice president of communications at Mass General Brigham, asserted that those cuts would “not affect front-line clinical workers or staff that support patient-facing care.” Decreases were aimed at becoming more efficient, not reducing needed care.
There is great irony in UVM’s announcement to add 242 new hospital beds at enormous cost, given its recent cutbacks which notably include a decrease in the number of hospital patients. At this juncture, we do not need a costly plan for 242 new beds in a shiny high-rise tower. Instead, UVM should be focused on reducing administrative costs, lowering prices, investing in front-line staff, fortifying liaisons with community providers, expanding mental health services and enhancing access to primary care. (UVM has done the opposite.)
UVM Health Network’s financial health and well-being are important. However, its level of excess revenue and cash growth are unconscionable when the rest of the health care system is starving. As Mike Smith (former Vermont secretary of human services and former Vermont secretary of administration) affirms in his recent letter to UVM Health Network, the “corporate machine” appears to be eclipsing Vermonter’s needs.
Read the story on VTDigger here: Julie Wasserman: With so much available cash, why did UVM Health Network “need” to cut critical services?.