Brattleboro hospital weighs federal status as it races to keep birthing center alive

Interim Chief David Sanville described the effort as a remote possibility, saying it is among the most difficult paths the hospital has considered.

Brattleboro Memorial Hospital is still moving toward a Dec. 31 shutdown of its birthing center, but leaders are now exploring a federal designation they say could provide a financial lifeline.

Interim chief financial officer David Sanville said the hospital is reviewing every available option as it tries to address the losses tied to the obstetrics unit. He said the service brings in fewer than one birth per day on average, even though nurses and doctors must remain on duty around the clock.

That staffing burden accounts for roughly one-third of the hospital’s yearly financial loss, according to Sanville, and it helped drive the earlier decision to close the unit.

The new plan centers on Critical Access Hospital status, a Medicare and Medicaid program that would reimburse the hospital based on its actual costs rather than standard rates. That could help cover personnel and equipment expenses even during days when no patients are delivered.

Sanville described the effort as a remote possibility, saying it is among the most difficult paths the hospital has considered in an attempt to preserve both the birth center and the broader hospital operation.

Brattleboro Memorial does not currently satisfy every federal requirement for the designation. Still, Sanville said there are Critical Access Hospitals elsewhere in the country that have been granted the status despite not meeting all of the criteria.

He is now studying the hospital’s finances to determine whether it makes sense to keep pushing ahead.

Supporters of the proposal include the Brattleboro Federation of Nurses, which says the change could help create a more durable financial structure for Brattleboro Memorial.

Ellen Schwartz of the Vermont Workers’ Center also backs the effort, but she warned that federal status alone would not solve the hospital’s problems. She said state officials should give the hospital more time instead of cutting support while staff are still trying to find a fix.

The issue comes after Brattleboro Memorial submitted its 2027 budget proposal to the Green Mountain Care Board last month, the same meeting at which the Dec. 31 deadline was confirmed. The Care Board is expected to finish hospital budget decisions this week.

Sanville said obtaining Critical Access Hospital designation could take anywhere from 90 days to a year. For now, the closure deadline remains in place, even as hospital leaders continue searching for alternatives.