A New Era of Accountability in Vermont Healthcare has Begun

VHC911 - Stat v.18

As readers may know, the Green Mountain Care Board will approve 2026 hospital budgets this month. Late last week, Mike Smith's "Liaison Team" issued a letter commenting on the budget the Health Network submitted in July. The letter will send shock waves through the budget process and it echos many of the concerns we have raised since forming last January. The following is our press statement released earlier today.

A New Era of Accountability in Vermont Healthcare has Begun

BURLINGTON, VT - In the spring of 2025, the Green Mountain Care Board and the University of Vermont Health Network settled a lawsuit by agreeing to several provisions. One of which was the creation of a "Liaison Team," chaired by Mike Smith, a longtime public servant in state government with a reputation for competence and integrity. Joining Smith are Nancy Kane a respected healthcare economist and Stephen Gorman, a leader in the healthcare industry.

Last week the Liaison Team issued a letter commenting in detail on the 2026 budget proposal from the University of Vermont Health Network submitted in early July. The letter explains that the budget submitted does not back up the public claims of cost reductions issued by the Network. Its letter reads in part:

"First, the budget narrative claims significant actions taken by UVMHN to improve affordability that are not supported by the financial details in the budget. The UVMHN 2026 budget claims to have reduced prices, operating expenses, and FTEs, but the numbers show increases in revenue, expenses, and FTEs."

Vermont Healthcare 911, a politically diverse coalition of business, labor, community and healthcare leaders concerned about expensive healthcare costs see this as reinforcing the message they have promoted since forming in January 2025. "For too long, hospital leaders at UVMMC and the Health Network have skirted accountability and used their market influence to drive costs to an unsustainable level. We are in a new era of accountability for healthcare leaders and VHC911 will do everything we can to complement the work of the Liaison Team, the Green Mountain Care Board and other leaders who are willing to confront the challenges honestly and get to work building a strong, sustainable rural health system in Vermont," said Chris Pearson, VHC911's Chair.

The Liaison Team's letter says there is a gap between UVM Health Network's messaging and the actual budget. "The budget narrative highlights a commercial rate decrease and 'significant' expense reductions by reducing administrative services and operating expenses, eliminating service duplication, and keeping care in local communities. And yet, the 2026 budget shows increases in revenue, in FTEs, and in operating expenses, with salary increases of 4% - 5%, and some executive salaries increasing even more than that."

The letter goes on to note that 62 FTEs dedicated to "communications" at the Health Network "seems excessive."

"Kudos to Mike Smith and the Liaison Team for digging into the details and working to keep affordability in focus," said Gov. Jim Douglas, co-chair of VHC911's Leadership Council. "Vermonters know there is a problem with hospital and insurance costs. We at VHC911 have been asking questions and pushing for answers from the outside. Now that the Liaison Team is making many of the same suggestions, we hope to see budgets come under control and Vermonters' pocketbooks protected," said Douglas.

The Liaison Team also connects excessive reserves and the need to view them within the broader affordability struggle for Vermonters. The letter notes that "As of 3rd quarter 2025, UVMHN has generated $1.7 billion in net unrestricted assets, and $1.4 Billion in unrestricted cash and investments.” It counsels that “UVMHN must begin to look at the broader impacts of its reserve position by: 1) maintaining a reasonable level of fiscal soundness to operate the Network in a prudent manner, but also; 2) balance an appropriate degree of fiscal soundness with stated Network and statewide goals of making healthcare affordable for Vermonters."

These statements echo findings in VHC911's May 22nd newsletter “Network Assets, When is Enough Enough?” 

"VHC911 data has shown that the UVM Health Network and the Medical Center are top heavy, amassing excessive reserves and hiding behind a barrage of data to stymie anyone that asks hard questions," says Lisa Ventriss, who co-chairs the VHC911 Leadership Council with Douglas. She continues, "Trying to message and spin your way through a hospital budget process while increasing profits by nearly 10% year-over-year points to a leadership crisis and the need for a culture change at the UVM Health Network. VHC911 has pointed this out using public data and here we have experts embedded in the network reaching the same conclusion," said Ventriss.

Read the Liaison Team letter here.

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