After money troubles surfaced earlier this month at Vermont’s Springfield Hospital, Gov. Phil Scott wants more detailed financial information about similarly sized hospitals in Vermont.
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Vt. Gov. Scott Wants Examination of Small Hospitals’ ‘Financial Health’ By Mike Faher VtDigger Thursday, December 27, 2018 After money troubles surfaced earlier this month at Vermont’s Springfield Hospital, Gov. Phil Scott wants more detailed financial information about similarly sized hospitals in Vermont. The governor has asked the Green Mountain Care Board to “re-evaluate” all critical access hospitals and report back as soon as possible about their finances. Care Board Chairman Kevin Mullin said the board will undertake that review, and he said that process likely will include public meetings. Mullin also said the board has taken steps to get more up-to-date information from hospitals about their budget performance and management. Though the care board recently concluded a review of hospitals’ fiscal year 2019 budgets, “given what’s transpired in Springfield, we should be taking another look,” Mullin said. Springfield Chief Executive Officer Tim Ford abruptly resigned on Dec. 12 after news reports showed the hospital hadn’t been paying its bills. Earlier in the month, Chief Financial Officer Scott Whittemore also departed. The hospital has hired an outside management consultant and is undergoing an independent audit. And Scott has appointed Tom Huebner, the former chief executive officer of Rutland Regional Medical Center, to “evaluate, monitor and assist” Springfield administrators. Though Springfield’s finances have been unsteady for several years, it’s not yet clear what led to the hospital’s most recent, more severe issues. Mullin has said 1 of 3 12/28/18, 9:43 AM Valley News - Vt. Gov. Scott Wants Examination of Small Hosp... https://www.vnews.com/Scott-wants-examination-of-small-hosp... he believes Springfield administrators were not as forthcoming as they should have been in recent interactions with the board, and he said new rules may be needed to govern such disclosures. Now Scott is weighing in, saying he wants a better financial accounting for each of Vermont’s “critical access hospitals.” That’s a federal designation meant to provide increased support for small, rural hospitals. In addition to Springfield’s critical access hospitals are Gifford Medical Center in Randolph, Mt. Ascutney Hospital in Windsor, North Country Hospital in Newport, Copley Hospital in Morrisville, Northeastern Vermont Regional Hospital in St. Johnsbury, Porter Medical Center in Middlebury and Grace Cottage Hospital in Townshend. In a Wednesday letter to Mullin, Scott said critical access hospitals “are a crucial part of our state’s health care landscape.” “Given recent revelations about the serious financial challenges at Springfield Hospital, I request that the Green Mountain Care Board re-evaluate all of Vermont’s critical access hospitals and report back in the near term about their financial health,” Scott wrote. “The board should make transparent its criteria and metrics for determining the financial viability of critical access hospitals.” In an interview on Thursday, Mullin noted that the care board had just received Scott’s request and hadn’t yet discussed details of conducting the review. Mullin said the evaluation should be done “as quickly as possible” while also allowing time for open discussion. “I think that we will have to have hearings and discuss the information in public,” he said. It’s not yet clear what will be done with that information. Scott said he hoped that, as a result of the Care Board’s review, “policymakers and community members will have ample information to understand the position of the critical access hospitals in their communities and their standing in our statewide system of care.” The care board also may be able to take some action, depending on the circumstances. As part of the annual hospital budget review process, the board sets net patient revenues and the rate that insurers are charged. The board also can take action if a hospital strays too far from its approved budget after a fiscal year concludes. 2 of 3 12/28/18, 9:43 AM Valley News - Vt. Gov. Scott Wants Examination of Small Hosp... https://www.vnews.com/Scott-wants-examination-of-small-hosp... In reaction to the Springfield situation, Mullin said the board is seeking more information in a more timely way. The care board has requested that hospitals, when reporting their year-to-date financials, also provide other key information including current cash on hand; any changes in management; any violation of a loan, bond or note covenant; and any severe, negative impacts on their financial stability. “We’re always trying to optimize the hospital reporting process,” Mullin said.![]()
www.vnews.com
Vt. Gov. Scott Wants Examination of Small Hospitals’ ‘Financial Health’ By Mike Faher VtDigger Thursday, December 27, 2018 After money troubles surfaced earlier this month at Vermont’s Springfield Hospital, Gov. Phil Scott wants more detailed financial information about similarly sized hospitals in Vermont. The governor has asked the Green Mountain Care Board to “re-evaluate” all critical access hospitals and report back as soon as possible about their finances. Care Board Chairman Kevin Mullin said the board will undertake that review, and he said that process likely will include public meetings. Mullin also said the board has taken steps to get more up-to-date information from hospitals about their budget performance and management. Though the care board recently concluded a review of hospitals’ fiscal year 2019 budgets, “given what’s transpired in Springfield, we should be taking another look,” Mullin said. Springfield Chief Executive Officer Tim Ford abruptly resigned on Dec. 12 after news reports showed the hospital hadn’t been paying its bills. Earlier in the month, Chief Financial Officer Scott Whittemore also departed. The hospital has hired an outside management consultant and is undergoing an independent audit. And Scott has appointed Tom Huebner, the former chief executive officer of Rutland Regional Medical Center, to “evaluate, monitor and assist” Springfield administrators. Though Springfield’s finances have been unsteady for several years, it’s not yet clear what led to the hospital’s most recent, more severe issues. Mullin has said 1 of 3 12/28/18, 9:43 AM Valley News - Vt. Gov. Scott Wants Examination of Small Hosp... https://www.vnews.com/Scott-wants-examination-of-small-hosp... he believes Springfield administrators were not as forthcoming as they should have been in recent interactions with the board, and he said new rules may be needed to govern such disclosures. Now Scott is weighing in, saying he wants a better financial accounting for each of Vermont’s “critical access hospitals.” That’s a federal designation meant to provide increased support for small, rural hospitals. In addition to Springfield’s critical access hospitals are Gifford Medical Center in Randolph, Mt. Ascutney Hospital in Windsor, North Country Hospital in Newport, Copley Hospital in Morrisville, Northeastern Vermont Regional Hospital in St. Johnsbury, Porter Medical Center in Middlebury and Grace Cottage Hospital in Townshend. In a Wednesday letter to Mullin, Scott said critical access hospitals “are a crucial part of our state’s health care landscape.” “Given recent revelations about the serious financial challenges at Springfield Hospital, I request that the Green Mountain Care Board re-evaluate all of Vermont’s critical access hospitals and report back in the near term about their financial health,” Scott wrote. “The board should make transparent its criteria and metrics for determining the financial viability of critical access hospitals.” In an interview on Thursday, Mullin noted that the care board had just received Scott’s request and hadn’t yet discussed details of conducting the review. Mullin said the evaluation should be done “as quickly as possible” while also allowing time for open discussion. “I think that we will have to have hearings and discuss the information in public,” he said. It’s not yet clear what will be done with that information. Scott said he hoped that, as a result of the Care Board’s review, “policymakers and community members will have ample information to understand the position of the critical access hospitals in their communities and their standing in our statewide system of care.” The care board also may be able to take some action, depending on the circumstances. As part of the annual hospital budget review process, the board sets net patient revenues and the rate that insurers are charged. The board also can take action if a hospital strays too far from its approved budget after a fiscal year concludes. 2 of 3 12/28/18, 9:43 AM Valley News - Vt. Gov. Scott Wants Examination of Small Hosp... https://www.vnews.com/Scott-wants-examination-of-small-hosp... In reaction to the Springfield situation, Mullin said the board is seeking more information in a more timely way. The care board has requested that hospitals, when reporting their year-to-date financials, also provide other key information including current cash on hand; any changes in management; any violation of a loan, bond or note covenant; and any severe, negative impacts on their financial stability. “We’re always trying to optimize the hospital reporting process,” Mullin said.
Follow the money.....
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