Immediate (August 23, 2005)
 
Mike Noble
Public Relations
802-847-2886

 

Fletcher Allen Presents Proposed FY2006 Budget  to The Department of Banking, Insurance, Securities and Health Care Administration 

BURLINGTON (VT) -- Fletcher Allen presented its proposed FY2006 Budget to the Department of Banking, Insurance, Securities and Health Care Administration (BISHCA) today during the annual budget hearings held by BISHCA.

The proposed operating revenue budget totals $670.4 million, a 4.5% increase over the FY 2005 budget.  The figure reflects a projected increase of 3.9% in inpatient volumes modest volume increases in outpatient services and physician office visits.  The revenue forecast also accounts for a significant decrease in Medicaid reimbursement. Expenses are projected to be up 6.7% at $655.3 million. A proposed rate increase of 8% will be sought to provide for a net income over expenses of $15.1 million and an operating margin of 2.3%.

BISHCA Commissioner, John Crowley will issue his decision on the proposed budget by September 15th.  The FY 2006 budget is effective on October 1.

The summary below compares the FY 2005 budget and FY 2005 projections with the proposed FY 2006 budget.

	FY 2005		FY 2006	% Change
	Budget	Year-end Projection	Budget	FY05-FY06
Net Operating Revenue	$641.2M	$611.6M	$670.4M	4.5 %
Operating Expense	$614.1M	$591.8M	$655.3M	6.7%
Income from operations	$  27.0M	$  22.5M	$ 15.1M	-44.0%
Operating Margin	4.2%	3.6%	2.3%	-46.3%