After almost 15 months of battling COVID-19, we are feeling cautiously optimistic about our eventual emergence from this pandemic. Given the direct connections between the pandemic and the UVM Health Network’s finances, it should be no surprise that we are assessing our latest financial results with the same kind of cautious optimism. Today, I am writing to give you a brief update on our Network’s ongoing financial recovery, along with important context regarding one-time relief funding, cost-control measures and patient visits.
For the first half of FY 2021, the Network as a whole achieved a positive operating margin of 1.4 percent, or $17.4 million. This is due to the second quarter ending March 31, during which we had a positive margin of 9 percent, or $60.9 million – largely because we received $83 million in one-time state and federal provider-relief funding. Without that one-time money, our Network would have seen a $22.1 million loss in the second quarter and a $65.6 million year-to-date loss.
Across the Network, our affiliates saw varying financial results in the second quarter. Positive margins were reported by Elizabethtown Community Hospital, Porter Medical Center and UVM Medical Center, while negative margins were reported at Alice Hyde Medical Center, Champlain Valley Physicians Hospital, Central Vermont Medical Center and Home Health & Hospice. Each affiliate is continuing to implement financial-improvement plans tailored to the challenges they face.
Given our ongoing response to COVID-19, we are grateful for the provider-relief support from our state and federal partners, which has clearly played a significant role in our finances so far this fiscal year. But that’s not the whole story. We’ve also worked hard to control costs throughout the health system, including limiting capital spending and reviewing position vacancies. We’ve continued to combine administrative functions across the Network, and we’ve been leveraging the power of the Network to maximize supply-chain savings. Additionally, in March, we saw continued increases in patient visits – nearly reaching pre-pandemic levels. This is good news, as we have been urging our patients throughout the pandemic to not forgo necessary health care.
It is important to note these positive signs, but just like the ups and downs we’ve seen since the pandemic began, we can’t count on them to continue: One month does not make a trend. Likewise, we don’t know whether any of our affiliates will qualify for additional provider relief from the federal government. The challenges and uncertainties we have faced both before and during the pandemic will continue to impact our Network. We are committed to facing those challenges and creating long-term sustainability. And we have doubled down on our commitment to value-based care, so we can improve patient health while controlling costs over time to make health care more affordable.
I am deeply grateful for the hard work and resiliency of our providers and staff, and for the trust and support of our patients and community. You all will always be at the center of everything we do.
Thank you for your support and leadership. I will continue to keep you updated on our work.
John R. Brumsted, MD
President and CEO
Lower number of patient visits during pandemic continues to fuel deficit. 
