Vermont lawmakers propose healthcare executive pay cap

State lawmakers in Vermont are targeting what they view as overly high salaries of healthcare executives, the Burlington Free Press reported March 3.

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Here are seven things to know about the proposal:

1. In early February, Rep. Daisy Berbeco questioned Sunil “Sunny” Eappen, MD, CEO of University of Vermont Health Network in Burlington, about how much he earns as CEO of the state’s largest hospital system. Dr. Eappen reportedly accepted a nearly $600,000 bonus in 2024 and his salary is more than $1.3 million. 

2. Administration and management at UVM Medical Center are paid 73% more than those at 106 other medical centers across the country, according to Vermont Healthcare 911, a nonprofit formed in response to the high cost of healthcare in the state. 

3. UVMHN’s chief media relations officer told the Burlington Free Press that less than 5 cents of every dollar went to pay executive and non-executive management salaries. 

4. Ms. Berbeco also questioned Dr. Eappen as to whether he felt it was fair that he accepted the bonus in a year where the system also made $122 million in cuts to staff and services in response to budget restrictions imposed by the Green Mountain Care Board, Vermont’s healthcare regulator. The cuts included 200 jobs, 50 hospital beds and certain procedures and specialty care units. 

5. The bill would also require the ratio of hospital administration to clinical expenses to fall in line with national averages. 

6. Using this formula would result in a top salary of about $416,000 annually, according to the report. 

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