By VDC staff

The Green Mountain Care Board approved fiscal 2027 hospital budgets Sunday that will require several Vermont hospitals to reduce what they charge commercial health insurers, as regulators seek to curb rising health insurance costs.

The board earlier set guidance calling for a 1% reduction in commercial net patient revenue, or NPR, although members varied from that target based on hospital finances, prices and expected patient use. Chair Owen Foster said the board must consider not only prices but also how much care hospitals provide.

Among the larger cuts, Rutland Regional Medical Center was ordered to reduce commercial reimbursement rates by at least 2.6%, with commercial NPR falling 1%. Gifford Medical Center faces a 3.7% commercial rate reduction and an 8.8% reduction in commercial NPR. Copley Hospital and Mount Ascutney Hospital were each ordered to cut commercial rates by at least 1%.

The University of Vermont Medical Center faces a 4.4% commercial reduction under a motion approved 3-2. UVM President and Chief Operating Officer Dr. Stephen Leffler warned the hospital expects to lose more than $75 million this year and said the board’s decision could result in another $75 million loss next year. He said UVM’s reserves currently are being supported by stock-market gains.

Central Vermont Medical Center also will see commercial rates reduced. The board approved a 0.8% reduction, increased to 1.7% because of a previous budget enforcement action. Members said they compromised on the smaller cut partly because of concern about the financial condition of CVMC and the UVM Health Network.

Not every hospital faces cuts. Northwestern Medical Center was allowed a 2% increase in commercial rates as the hospital works to expand access and take patients from UVM Medical Center. Springfield Hospital also received permission for a 2% commercial rate increase, plus additional revenue for inpatient psychiatric care.

Brattleboro Memorial Hospital was essentially level-funded while it prepares updated financial information, although the board created an exception allowing higher commercial reimbursement for maternity and pediatric services if the hospital retains its birthing center.