State Investigation

Vermont

The Green Mountain State

Most Restrictive

100

out of 100

#43

tied for last

Phil Scott

Republican

647K

smallest CON state

01

What Vermont's CON Covers

Vermont regulates virtually every healthcare service. The Green Mountain Care Board (GMCB) holds both CON authority and rate-setting authority — a combination unique in the nation.

Regulated Services

Hospitals (new construction & renovation)
Nursing homes & long-term care
Home health agencies
Hospice programs
Ambulatory surgical centers
Diagnostic imaging centers
Radiation therapy facilities
Cardiac catheterization labs
Capital expenditures over $3M
Major medical equipment
Substance abuse treatment centers
Residential care facilities

The GMCB Dual Authority

Vermont's Green Mountain Care Board is the only regulatory body in the nation that combines Certificate of Need authority with hospital budget review and rate-setting power. This means the GMCB doesn't just decide who can build — it decides what they can charge.

CON Authority

Controls market entry for all major healthcare services

Rate-Setting Authority

Reviews and approves hospital budgets annually

Capital Expenditure Review

Any project over $3M requires GMCB approval

Application Process

StepProcessTimeline
1Letter of Intent filed with GMCBRequired before application
2Full application with financial projectionsExtensive documentation
3Public comment period30-60 days
4GMCB staff review and analysis90-180 days
5Public hearing (if requested)Additional 30-60 days
6GMCB board voteFinal decision
02

Who Benefits from Vermont's CON

UVM Health Network dominates Vermont's healthcare market. With 6 hospitals in a state of 647,000 people, the network has near-total control of inpatient care.

Dominant System

UVM Health Network

University of Vermont Medical Center + 5 affiliate hospitals

Hospitals

6

Market Share

~75%

of inpatient admissions

Status

Nonprofit

Academic Affiliation

UVM College of Medicine

Market Reality

State Population

647,064

Total Hospitals

14

ASCs

Minimal

CON barriers limit competition

The Structural Problem

Vermont is the smallest state with a full CON program, and it has the most comprehensive regulatory apparatus in the country. The GMCB reviews hospital budgets, sets rates, and controls market entry. In a state with fewer people than most mid-size cities, this creates a regulatory environment where one dominant system faces virtually no competitive pressure. UVM Health Network's ~75% market share is not the result of consumer choice — it's the result of regulatory design.

03

The Human Cost

Vermont's regulatory complexity has produced notable policy failures and access challenges.

Policy Failure

Green Mountain Care Collapse

In 2011, Vermont passed Act 48 to create Green Mountain Care, a single-payer healthcare system. Governor Peter Shumlin championed it as a national model. By 2014, the projected costs ($2.6 billion in new taxes) forced Shumlin to abandon the plan entirely. The failure demonstrated that even total regulatory control cannot overcome the fundamental economics of a healthcare market distorted by decades of anti-competitive policy.

Access Crisis

Rural Hospital Strain

Despite having the most comprehensive regulatory apparatus in the country, Vermont's rural hospitals face chronic financial strain. The GMCB's budget review process constrains revenue growth while CON laws prevent new entrants who might bring innovative care models. Several small hospitals have required emergency financial interventions. The regulatory framework designed to "protect" access has instead created a system where struggling hospitals can't adapt and new competitors can't enter.

Regulatory Burden

The Cost of Dual Authority

Vermont's unique dual-authority model (CON + rate-setting) creates a regulatory burden that is disproportionate to the state's size. Healthcare providers must navigate both market-entry restrictions and annual budget reviews. The administrative costs of compliance fall hardest on smaller providers, reinforcing the dominance of UVM Health Network, which has the institutional resources to manage the regulatory process. The GMCB's own reports acknowledge that the administrative burden is significant relative to the state's healthcare market size.

04

Reform Status

Vermont has shown no meaningful movement toward CON reform. The GMCB's institutional authority makes change politically difficult.

Current System

CON ProgramFull scope
Rate-SettingActive
Budget ReviewAnnual
Capital Threshold$3M
Reform BillsNone active

What Reform Would Look Like

CON ProgramRepealed or limited
Rate-SettingMarket-based
ASC EntryOpen
Capital ThresholdEliminated
Expected ImpactNew entrants, lower costs
05Editorial

The Rojas Report Take

Vermont is the most instructive case study in American healthcare regulation.

A state of 647,000 people has built the most comprehensive healthcare regulatory apparatus in the country. The Green Mountain Care Board controls who can enter the market, what they can charge, and how much they can spend on capital improvements. This is not regulation — it is central planning.

The result is predictable. One system dominates. Competition is structurally impossible. Rural hospitals struggle despite being "protected." And when Vermont tried to take the logic to its conclusion with single-payer, the economics collapsed under the weight of a market that had never been allowed to function.

Vermont's CON score of 100 is not just a number. It represents the most complete version of the regulatory capture thesis: when you give a government board the power to control both supply and price, the market doesn't become more efficient — it becomes more dependent on the board. The GMCB is not a safety net. It is the architecture of a monopoly.

— The Rojas Report

The Rojas Report

Sources: Green Mountain Care Board public filings and annual reports; Vermont Department of Health; UVM Health Network financial disclosures; National Conference of State Legislatures CON database; Mercatus Center CON research; Vermont Act 48 (2011) legislative record. All data verified as of March 2026.