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Rural Vermont hospitals describe local cuts, workforce steps and stronger partnerships to sustain access

Senate Health and Welfare Committee (continuation; joined by House Health Care) · February 7, 2026
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Summary

Leaders from Northeastern Vermont Regional Hospital and Gifford Healthcare outlined local expense reductions, workforce programs and new regional collaborations — including shared specialists and pooled purchasing — intended to keep care local and stabilize small hospitals.

CEOs of small and regional hospitals told legislators they are pursuing targeted, local steps to stabilize operations while collaborating with larger centers and regional partners.

Sean Tester, CEO of Northeastern Vermont Regional Hospital in St. Johnsbury, described about $2,500,000 in expense reductions last year at his critical‑access hospital. Tester listed voluntary early retirement for 15 employees, the elimination of an occupational medicine program (with services moved into an Express Care clinic), eight FTE reductions (five administrative, three clinical), nursing‑schedule restructuring to reduce traveler costs, and savings from reduced IT…

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