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MaineGeneral Health to lay off 100 full-time equivalent positions

MaineGeneral Hospital in Augusta.
Troy R. Bennett
/
BDN
MaineGeneral Hospital in Augusta.

MaineGeneral Health in Augusta plans to lay off 100 full-time equivalent positions in mid-April.

President and CEO Nathan Howell says like other hospitals across the state, MaineGeneral is on tenuous financial footing due to rising business costs, reimbursement rates that don't cover the cost of care, and excessive denials, especially from Medicare Advantage plans.

In a written statement, Howell says those issues are compounded by the MaineCare crisis. Because the state Legislature failed to pass a supplemental budget with a two-thirds majority to plug a $118 million deficit in MaineCare, hospital payments have been reduced. Howell says MaineGeneral is taking a hit of roughly $600,000 a week.

To help mitigate losses, he says MaineGeneral is freezing spending where possible, and leaving certain positions unfilled. The health system has a workforce of nearly 5,000.

The announcement of the layoffs comes a little more than a week after Northern Light announced it will close Inland Hospital in Waterville this spring due to financial challenges.

"We know many people in the Greater Waterville area are concerned about their health care needs right now," says Howell. "We appreciate the important role we have in the community, especially in light of the Inland Hospital closure announcement, and we are assessing how we can be helpful with transitions of care."