Owen Foster is stepping down as chair of the Green Mountain Care Board but will remain a member of the powerful five-person panel that regulates Vermont’s hospitals and health insurers, a significant leadership change for the state’s top health care regulator amid continuing turmoil over hospital finances and affordability.
Gov. Phil Scott announced the move on Friday afternoon in a press release. Scott said the change was prompted by current board member Jessica Holmes’ decision not to seek reappointment following her current term, which concludes September 30. Foster will assume the role of board member for the standard six-year term starting October 1, following Holmes’ official departure.
The change comes at a pivotal moment for Vermont’s health care system, as the state continues to grapple with high hospital costs, rising insurance premiums and mounting financial pressure. The transition also follows one of the board’s most contentious budget cycles, during which regulators imposed strict limits on hospital spending and executive compensation.
Foster, a former federal prosecutor appointed by Gov. Phil Scott in 2022, has chaired the Green Mountain Care Board during a period of extraordinary stress for Vermont’s health care system. Under his leadership, the board took an increasingly assertive approach to regulating hospital budgets, repeatedly warning that unchecked spending growth threatens the affordability of health care for Vermonters.
In an interview with Seven Days, Foster said he decided to step down following Homes’ departure in large part so he can spend more time with family. He said he intends to assist with the incoming chair’s onboarding and will support their directives.
Scott said Foster has been “an effective leader as we work to make healthcare more affordable for Vermonters” and will “continue to be a valuable member of the board in this new role.”
The Green Mountain Care Board, established by the state legislature in 2011, occupies an unusually influential position in Vermont government. The independent body approves hospital budgets, regulates health insurance rates, oversees major health care capital projects and monitors statewide health care spending.
During Foster’s tenure, the board repeatedly pushed hospitals — particularly the University of Vermont Health Network — over spending, executive compensation and the pace of health care cost growth. Last year, the board exercised expanded authority over executive pay while ordering significant reductions to some hospitals’ requested commercial rate increases.
Foster said he’s particularly proud of the progress made during his tenure as chair to reign in health care costs and direct greater support to community providers, though he credited the entire board and its staff for the success.
The Green Mountain Care Board Nominating Committee will recruit and recommend candidates to the governor to serve as the next board chair, according to the administration’s press release. Scott encouraged the committee members to seek out individuals who have “demonstrated executive leadership experience, sound judgment, a commitment to transparency and accountability, and a proven ability to improve organizational performance while balancing access, quality, affordability, and long-term financial sustainability.”
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