Some rural hospitals in Maine said they could be in immediate jeopardy if the Legislature fails to pass the supplemental budget this week by a two-thirds majority.
The proposed budget would resolve a deficit in the MaineCare program. But the state has already notified hospitals it will reduce MaineCare payments by 30% starting this week. Maine's Department of Health and Human Services says the timing on when it will be able to release held payments is dependent on action by the Legislature.
Millinocket Regional Hospital CEO Dr. Robert Peterson said the small, rural hospital doesn't have the cash reserves to absorb a shortfall of that magnitude.
"Cash flow is our biggest challenge," Peterson said. "We need to be paid in full in a timely manner so that we can pay our bills."
Christine Maguire, president and CEO of Mount Desert Island Hospital, said the reductions would mean a cut of roughly $40,000 a week.
"To have critical access hospitals take a 30% payment is monumental for small hospitals," Maguire said. "And for an independent hospital, which we are, we don't have the leverage of a system to help us with cash infusion."
Maguire said MDI Hospital would be forced to evaluate services, programs, and staff.
The supplemental budget has failed to garner support from Republican lawmakers who want to see restrictions on welfare programs.
