Northeastern Vermont Regional Hospital in St. Johnsbury announced upcoming cuts to staff and two hospital programs on Tuesday, joining other medical facilities across the state making similar announcements.
The cuts, which will take effect Sept. 30, include five positions: three in occupational medicine and one each in community health coordination and physical therapy, the hospital said in a press release this week. These staffing cuts come on top of three administrative positions cut earlier this year.
The hospital will be shuttering its occupational medicine office — that works “onboarding new employees with physicals and immunizations” — transferring partial services to Northern Express Care, which operates three walk-in clinics in northeastern Vermont. Northeastern Vermont Regional Hospital will also be ending its partnership for ear, nose and throat care with Littleton Regional Healthcare, transitioning patients to the hospital’s own providers.
“I want to emphasize that these reductions are in no way a reflection of performance or dedication — they’re about ensuring that our organization remains strong and resilient for the communities we serve,” the hospital’s CEO Shawn Tester said in the release.
Northeastern Vermont Regional Hospital is one of the Northeast Kingdom’s largest providers of health care. According to regulator Green Mountain Care Board, the hospital is in the mid-range of its peer facilities across the state, with over $120 million patient revenue, the sixth highest in fiscal year 2024.
In the Thursday release, Northeastern Vermont Regional Hospital officials said more may be needed to ensure the hospital’s financial future, including adjustments made to employees schedules like reductions in overtime, “efficiency improvements” for hospital technology, and a review of certain employee benefits for “identify potential savings with minimal impact, including early retirement options for those who qualify.”
“In order to assist in lowering the cost of health care for Vermonters, while keeping essential services local, we must find savings,” Tester said. “These difficult decisions are necessary to … preserve our ability to serve the Northeast Kingdom well into the future.”
In the release, the hospital blamed “rising labor and supply costs, reduced reimbursement rates and regulatory budget requirements,” for the cuts.
Northeastern Vermont Regional Hospital is not the only hospital or medical system facing similar issues.
In June, Brattleboro Hospital laid off hospital leaders to address a $4 million hole in its budget. The University of Vermont Health Network announced it would be cutting 77 positions in the same week Northeastern Vermont Regional Hospital announced its cuts.
These layoffs come as Vermont’s health care leaders look to address the systemic challenges — an aging population and a large number financially challenged hospitals — of a “badly broken” health care system that have resulted in increasingly high health insurance costs. The cuts also come as hospitals brace for the impacts of the Trump administration’s incoming cuts to Medicaid insurance.
“NVRH isn’t going anywhere. We’re here for the long haul and we’re deeply grateful to our entire team for their commitment,” Tester said.
