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Hospital Budget Enforcement

Vermont’s hospital budgets, which have been subject to state review since 1983, have been regulated by the Green Mountain Care Board (GMCB) since hospital fiscal year 2013, which began in October 2012. The GMCB’s review is guided by Hospital Budget Rule 3.000 and by the Board's policies on net patient revenue, community needs assessments, physician transfers, and enforcement found in Hospital Budget Reporting Requirements. More information on GMCB's hospital budget process is available in the Hospital Budget Review guide. This page has information about hospital budget enforcement.

FY2017 UVMHN Enforcement Action

In FY2017, UMV had approximately $21M in surplus funds. The GMCB voted to provisionally allow UVM to self-restrict $21M in surplus funds with the condition that such funds be used solely for investments that measurably increase inpatient mental health capacity in Vermont. Beginning in July 1, 2018 and quarterly thereafter, the UVMHN shall report to the GMCB on details of its plans for making such investments.

In 2023, the GMCB modified the UVMMC FY17 enforcement action to (1) permit the funds self restricted to be used to increase capacity of mental health services in the state (not limited to inpatient capacity), (2) require UVMHN to develop a proposal that reflects and incorporates priorities from the Vermont Department of Mental Health and contributions from community members identified by DMH for planned use of those funds, and (3) require that until utilized, such funds shall be held in the UVMHN Funded Depreciation account, with funds expected to be deployed in less than 9 months shall be held in the short-term investment portfolio; funds expected to be deployed in more than 9 months shall be held in the 60/40 portfolio, and all interest, earnings and appreciation shall be accounted for and used to increase capacity of mental health services in the state.