September 13, 2010 The Dartmouth-Hitchcock Boards of Trustees have approved a Fiscal Year 2011 budget, intended to close a projected $50 million budget gap while maintaining the organization's goals of high-quality, high-value, patient-centered healthcare. At its regular quarterly meeting Sept. 2-3, the Trustees also reaffirmed Dartmouth-Hitchcock's commitment to several major projects, including the "eD-H" electronic health records project and the ongoing development of Dartmouth-Hitchcock Health, an integrated health system that will coordinate resources, expand access to the specialized services and research available at Dartmouth-Hitchcock Medical Center, and enhance the quality of care in communities throughout New Hampshire and eastern Vermont. "Dartmouth-Hitchcock is as well-positioned as any academic health system in the nation to excel in the years ahead," said Hospital Board of Trustees Chair Jennie L. Norman. "We have the strategic blueprint in place to guide us. Yes, we have some very real challenges to overcome in the near term, but our future is bright, and we are confident our organization and people are up to this test." The Fiscal Year 2011 budget reflects the changing health care, demographic, and economic environment, as well as Dartmouth-Hitchcock's continuing evolution as a model of delivering high-quality, value-based patient care at lower cost. The plan was informed by Dartmouth-Hitchcock's comprehensive patient-centered and academically-based mission and vision, and supported by clearly defined strategic goals and imperatives that serve as Dartmouth-Hitchcock's guide for advancing the health of the region and the nation. "As we address longer–term plans, we face immediate issues," wrote Dartmouth-Hitchcock Co-Presidents Nancy A. Formella, MSN, RN, and Dr. James N. Weinstein, in a Sept. 13 message to all Dartmouth-Hitchcock employees. "Our challenges, like those of other health care organizations across the United States, are real. We have been hit hard by the recession, reduced payments, and increasing need for our services." In 2009 alone, Dartmouth-Hitchcock absorbed Medicaid losses of more than $57 million in New Hampshire and almost $30 million in Vermont. Over the past six months, a steadily increasing gap between expenses and revenues led to a significant shortfall in Dartmouth-Hitchcock's Fiscal Year 2010 operating budget. The shortfall in Fiscal Year 2010 placed additional pressure on the starting point for Dartmouth-Hitchcock's Fiscal Year 2011 budget which, if left unchecked, would have resulted in a $50 million gap between revenues and expenses. The specific steps in the budget plan were outlined by Formella and Weinstein in their message to employees, and include: In addition, Dartmouth-Hitchcock will continue to aggressively identify cost-savings in non-personnel expenses, including such areas as supply management, travel, and purchased services. "These decisions have been difficult to make but they were guided by our mission and vision and the principles of fairness and equity," wrote Formella and Weinstein. "Above all, our decisions have been directed by our commitment to the patients and families who define our reason for being here." Other board actions In addition to the approval of the Fiscal Year 2011 budget, the Dartmouth-Hitchcock Boards also: "Dartmouth-Hitchcock employees have been taking care of the people of northern New England for generations, and we are deeply committed to the public trust we hold," wrote Formella and Weinstein. "We feel extremely fortunate to be working with individuals who demonstrate every day, the care, commitment, and continuing excellence that makes our future so bright. Together we face some very real challenges, but we are confident we - all of us - are up to the test."
Lebanon, NH --