The Federal Reserve Bank of Boston published a regional analysis describing how access to health care in Maine, New Hampshire, and Vermont is worsening as hospitals reduce services and patients travel longer distances for care. The piece points to research linking greater distance from hospitals to higher rates of fatal accidents, fatal heart attacks, and infant mortality, and attributes the erosion in access to a mix of demographic pressures, staffing constraints, and acute financial strain on providers. The analysis highlights aging populations and low fertility rates across the three states as a shrinking base for services such as maternity care, alongside workforce recruitment challenges tied to housing availability and costs. It notes that 22 of northern New England’s 75 hospitals lacked maternity wards in January 2019 and that additional labor and delivery units have since closed, including seven more in Maine and one each in New Hampshire and Vermont, while home prices rose between April 2020 and April 2025 by 65.3% in New Hampshire, 63.7% in Maine, and 41.8% in Vermont. Financial stress indicators cited include Northern Light Health’s USD 156 million loss in 2024 and the subsequent closure of Northern Light Inland Hospital in Waterville, MaineGeneral Health reporting losses of about USD 600,000 per week, Catholic Medical Center reporting monthly losses of USD 2 million to USD 3 million prior to its February sale, and a state-mandated analysis projecting Vermont hospitals may need USD 700 million to USD 2.4 billion to break even by 2028 under varying assumptions. The article also describes regional capacity gaps across primary care, ambulance coverage, and maternity care, including Vermont’s reported shortfall of roughly 370 full-time equivalent primary care physicians by 2030.
Federal Reserve Bank of Boston 2025-06-11
Federal Reserve Bank of Boston highlights growing health care deserts and hospital service cutbacks across northern New England
The Federal Reserve Bank of Boston's analysis shows worsening healthcare access in Maine, New Hampshire, and Vermont due to hospital service reductions and increased travel distances. Contributing factors include demographic pressures, staffing challenges, and financial strains, with significant hospital closures and losses reported. The report highlights a projected need for substantial financial support for Vermont hospitals to break even by 2028 and identifies regional capacity gaps in primary care and maternity services.