Bill S.188, introduced by Senator Lyons, aims to enhance hospital governance in Vermont by mandating that each hospital's board of directors includes at least two public representatives appointed by the Governor. These public members will have the same rights and responsibilities as other board members and will serve staggered initial terms of two and three years, respectively. Additionally, the bill requires the establishment of a compensation committee within each hospital's board, which must include at least two public representatives as voting members. This committee will be responsible for reviewing and recommending compensation packages for hospital executives.

Furthermore, the bill stipulates that hospitals must provide detailed information to the Green Mountain Care Board before making any changes to executive compensation. This includes submitting a sworn statement that outlines compensation benchmarks, detailed surveys or peer group data used for establishing compensation, and criteria for any bonuses awarded. The Green Mountain Care Board has the authority to require modifications to the compensation benchmarks if they find the comparison groups to be insufficiently similar to the hospital. The act is set to take effect upon passage.