UVMMC Reports Eye-Popping Profit
University of Vermont Medical Center Reports Eye-Popping $800 Million Profit on Commercial Insurance
Vermont’s health insurance premiums are the most expensive in the nation and have increased 93% since 2018. Hospitals account for a large portion of Vermont’s healthcare expenditures and Blue Cross Blue Shield (BCBS of VT) has cited the high costs of hospital care as one of the main drivers for the rapid increase in premiums. Today that picture gets even clearer.
UVMMC reported a leap in profit (net patient revenue) from commercial insurers that stands apart from other Academic Medical Centers (AMCs) serving Vermonters (see Figure 1). In 2020, 2021 and 2022, profits at UVMMC were climbing but they were in line with neighboring institutions – around $250-350 million. By 2023, UVMMC’s profit from commercial insurance jumped to $801,927,336.
Figure 1. Commercial hospital operating profits for AMCs serving Vermont
In the same period of record profits at UVMMC, we have seen Vermont’s largest (and only in-state) health insurer struggle to remain profitable even as insurance rates increase by double-digits year over year. NASHP’s data is always a year behind, but take a look at UVMMC’s commercial profits compared to insurance premium costs; the pattern is striking (Figure 2). The concurrent increase in UVMMCs commercial operating profits and insurance premiums offers important insight into why health insurance in Vermont is the most expensive in the nation.
To get a better understanding of UVMMCs commercial revenue profit, we looked at how they compare versus over 100 other AMCs across the country (Figure 3)*. In 2023 UVMMC enjoyed the 11th highest commercial profit in the group, fueling the high cost of commercial health insurance in Vermont, and directly impacting affordability for all of us living here.
In 2023 UVMMCs Commercial Insurance Revenue Profit Per Discharge Ranked The 11th Highest Out of 103 Academic Medical Centers in the Country. (Results per adjusted discharge allows a comparison that accounts for differences across AMCs such as size and the populations they serve.)
Figure 3. Commercial insurance revenue profit per adjusted discharge.
Not only has UVMMC has reported an extraordinary increase in net revenue from commercial insurance that coincides with escalating costs of insurance for Vermonters. But when compared to other AMCs, UVMMC has one of the highest rates of commercial profit in the country, particularly in the northeast region.
These findings reinforce that UVMMC is an inexplicably high-cost AMC, contributing to Vermont's position as one of the most expensive health insurance markets in the nation. Data presented previously by VHC911 shows that UVMMC is a particularly expensive AMC when it comes to costs for management & administration.
The good news is, these findings collectively show that costs can be reduced at UVMMC without cutting services for Vermonters. One of the most important steps would be for leadership at UVMMC to change their approach and work cooperatively with state regulators on budgets that can be managed based on Medicare reimbursement as a benchmark, as happens with many other AMCs across the country. The evidence presented in VHC911’s newsletters, and other stakeholders, suggests this could be achieved while maintaining or even improving access to services.
Data from this analysis comes from NASHP Hospital Cost Tool Data Set, Release Date December 20, 2024 NASHP Hospital Cost Tool, and from the Kaiser Family Foundation (KFF) (Marketplace Average Benchmark Premiums, 2014-2025 | KFF).
*Readers may note previous analyses compared UVMMC among 107 AMCs. Four of that group did not report net revenue from commercial insurance so couldn’t be included in this dataset.