Vermont Hospital Faces Birthing Center Closure Amid Medicaid Funding Gap

Brattleboro Memorial Hospital in southern Vermont is projected to lose $14 million this year, adding to roughly $30 million in losses over the past two fiscal years. To curb the deficit, the hospital has shut down its birthing center, jeopardising obstetric care for a region where more than 45 % of births are covered by Medicaid. clinicians have written to Governor Phil Scott and state health officials urging an increase in Medicaid reimbursement rates for prenatal, labor‑and‑delivery, and postpartum services, noting that current payments cover less than half of billed costs.

Statewide, 13 of Vermont’s 14 hospitals are expected to operate in the red by 2028, according to a Green Mountain Care Board‑commissioned study, prompting calls for systemic reform. Brattleboro has applied for a grant under the Rural Health Transformation Program, a federal‑state fund of $195 million annually intended to redesign health‑care delivery rather than plug budget holes. The hospitals and clinicians argue that higher Medicaid rates and targeted funding are essential to keep obstetric services viable and prevent pregnant patients from traveling long distances for care.