Plan addresses rising costs and limits impacts to patients
July 29, 2025 – ST. JOHNSBURY, VT – NVRH is committed to lowering the cost of health care while promoting access to essential services. In response to ongoing financial pressures and the evolving healthcare landscape in Vermont and the nation, NVRH has implemented a cost-containment strategy designed to maintain high-quality care while securing the organization’s long-term sustainability. The plan was developed through careful analysis and input from leaders and staff across the hospital to minimize disruption to patient care.
Effective September 30, 2025, NVRH will close their Occupational Medicine office, transferring certain services to Northern Express Care, while implementing an in-house employee health nursing model. Additionally, the hospital will end their partnership for Ear, Nose and Throat (ENT) services with Littleton Regional Healthcare, supporting patients to transition to existing NVRH providers.
A total of 5 positions will be impacted by these organizational shifts including members of the Occupational Medicine team, a Community Health Resource Center coordinator, and a physical therapy assistant at Northern Physical Therapy. This is in addition to 3 administrative positions previously eliminated over the last few months.
“Our top priority remains providing exceptional care to our patients and communities for the long-term,” said NVRH CEO Shawn Tester. “In order to assist in lowering the cost of health care for Vermonters, while keeping essential services local, we must find savings. These difficult decisions are necessary to align our operations with current and projected volumes and to preserve our ability to serve the Northeast Kingdom well into the future.”
Rising Costs Force Difficult Choices
The financial challenges driving these changes include rising labor and supply costs, reduced reimbursement rates and regulatory budget requirements. As part of a broader strategy to ensure long-term recovery and resilience, NVRH leadership is focused on cutting administrative costs and reducing or eliminating underutilized services while minimizing impacts on core clinical services, patients and staff.
Other cost-containment measures being implemented include streamlined scheduling, reduced overtime, and offering voluntary early retirement to select employees. The hospital is also focusing on finding savings in areas like technology licensing, enhancing operational efficiency, and exploring cost-saving opportunities in employee benefits with minimal impact.
A Positive Path Forward
NVRH is committed to supporting the affected staff members by offering HR consultation and support, compensatory packages including continued healthcare coverage through 2025, and additional employment opportunities at NVRH where applicable.
These changes are unrelated to NVRH’s West Wing Expansion project which is scheduled to be completed in 2027. The expansion will update and improve the Emergency Department, laboratory and in-house pharmacy. It has been in the budget for several years and is funded through loans, federal grants and public support. These facility updates are necessary to ensure regulatory compliance and to meet current care standards. Learn more about the West Wing Project.
“This news is incredibly difficult for those affected, and 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,” said Tester. “NVRH isn’t going anywhere. We’re here for the long haul and we’re deeply grateful to our entire team for their commitment.”
Read additional details and Frequently Asked Questions about NVRH’s cost-containment strategy.