Vermont Price Variation Analysis

Sunday, August 31, 2014
Vermont Price Variation Analysis
Katharine London, MS
University of Massachusetts Medical School
Michael Grenier, MPA
University of Massachusetts Medical School

This analysis documents price variations across the state and suggests a process and methodology that the Vermont Green Mountain Care Board could use to set standard rates.  The report determined that inpatient prices among Vermont's 14 hospitals and Dartmouth-Hitchcock Medical Center in New Hampshire vary from 71 to 130 percent of the state average.  The analysis identified a number of factors that explain some variation in professional prices among providers and also showed there is no consistency in the share of variation explained by each factor across health services.