Op-Ed: BMH is cornerstone of southeastern VT economy
Anchor institutions play an outsized role in regional stability, a role that often becomes most visible only after their loss. For southeastern Vermont, Brattleboro Memorial Hospital (BMH) is one of those cornerstones. It is one of our region’s largest employers and one of the clearest indicators of our community’s long-term health.
Recent announcements regarding progress between BMH leadership and its unions are very encouraging and reflect a meaningful commitment to collaboration, stability, and the long-term strength of healthcare in our region. This progress also creates space to address the broader forces reshaping rural healthcare and the role each of us plays in supporting BMH’s continued stability and success.
To support BMH responsibly, we must look beyond the headlines and recognize what is happening. BMH is navigating a forced and rapid shift in how healthcare is funded and delivered in America, and here in our rural state. BMH is not struggling because it is failing at its mission; it is struggling because the longstanding business model for Vermont rural healthcare is being dismantled before a sustainable path has been identified.
The $14.5 million gap identified last fall reflects structural changes imposed by state and federal policy. For instance, changes to pharmacy funding under Act 55 capped the revenue hospitals can generate from outpatient drugs, resulting in an approximately $5 million impact to BMH’s bottom line. While intended to curb statewide price-gouging, these margins were never “excess profit” at BMH. Instead, they served as a financial bridge allowing BMH to serve Medicare and Medicaid patients, programs that routinely reimburse below the actual cost of care.
It is important to acknowledge that the hospital’s journey toward stability hasn’t been without missteps. Initial financial reporting last fall proved overly optimistic and damaged trust with regulators and stakeholders. However, the response to those errors has been decisive.
The BMH Board of Directors has taken meaningful steps to correct the course. By bringing in interim leadership and specialized consultants, they have committed to the level of transparency that regulators and the public rightly expect. We are now seeing the outcomes of that leadership: stabilizing influence on operations, long-term commitments for staffing, and a realistic, accurate accounting process, all creating a renewed foundation of trust with local stakeholders, regulators, and the greater BMH community.
Notably, the partnership demonstrated by legislative leadership, state regulators, hospital leadership, and the broader BMH community in recent months has been both encouraging and meaningful for the future of healthcare in our region. The willingness of all parties to work collaboratively toward practical solutions reflects a shared commitment to maintaining a strong, stable, and sustainable healthcare system for the communities BMH serves.
The recent coming together of BMH leadership and staff to secure the hospital’s future must now be matched by the community’s engagement. Behind the financial statements are over 500 of our neighbors: nurses, physicians, technicians, and support staff. Supporting our local healthcare provider is not an act of charity; it is a practical investment in the resilience of our community.
Our call to action is simple: start here. From routine screenings to specialized care, choosing BMH is a direct vote for the continued viability of the greater Brattleboro region. A thriving economy starts with a healthy community, and a healthy community is one that stands behind the institutions and the people who care for it.
This is a moment for engagement rather than distance. If we want Southeastern Vermont to remain a premier place to live, work, and raise a family, we must protect and utilize our hospital. A community that loses its hospital is permanently shaped by that loss; a community that sustains one is defined by its strength.
Adam Grinold
Executive director, Brattleboro Development Credit Corporation.
