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Vermont health leaders warn of funding shortfall as FQHCs and hospitals face deficits
Summary
Representatives of federally qualified health centers, the Vermont Medical Society and the state hospital association told the Senate Health & Welfare committee that primary care and hospitals are financially strained, citing multi‑million dollar deficits, shrinking 340B savings and a projected $20 million shortfall tied to AHEAD cohort timing.
At a meeting of the Vermont Senate Health & Welfare committee, state health leaders warned that federally qualified health centers (FQHCs) and hospitals are operating under mounting financial pressure that could force service reductions and site closures.
Mary Kate Mollman, director of Vermont public policy for Bi-State Primary Care Association, told the committee that FQHCs across Vermont are “very, very financially fragile” and that the association projects an $8,500,000 operational deficit across its members this year. “We have members with less than 20 days cash on hand,” Mollman said, and at least one member is “potentially considering bankruptcy,” she added.
The session included testimony from Jessica Barnard, executive director of the Vermont Medical Society,…
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