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VITAL outlines $12.2M operating plan, warns of federal funding dependency
Summary
Vermont Health Information Exchange operator VITAL presented its FY25 budget, use of federal CMS funding and state Health IT Fund support, operational metrics and a planned infrastructure investment that uses reserves to cover a projected operating shortfall.
VITAL CEO Beth Anderson told the Health Care Committee that VITAL, the nonprofit that operates Vermont’s statewide health information exchange, submitted a FY25 budget projecting roughly $12.1 million in revenue and $12.2 million in expenses and is using board-designated assets to cover an intentional, short-term operating loss.
Anderson said the Agency of Human Services provides about 97% of VITAL’s current fiscal-year revenues under a contract that follows the state fiscal year (July 1–June 30). Will Dempsey, the Agency of Human Services health data officer, said that the state share of VITAL funding is primarily drawn from the Health Information Technology Fund, which in turn receives a portion of the health care claims tax under 32 VSA §1042(b) and related statutory reporting requirements under 32 VSA §1031(g). Dempsey noted Act 144 of 2024 extended the fund’s sunset date to July 1, 2026.
Why it matters: VITAL’s operations rely on a mix of…
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