A state commission tasked with protecting hospitals in Maine met for the first time Wednesday.
The group is examining state laws that regulate changes in hospital ownership and termination of services.
During a public hearing, Jeff Austin of the Maine Hospital Association urged the commission to balance state oversight with the ability of hospitals to make decisions on which services to provide.
"Having the state be able to tell us, no you cannot terminate a service despite your concerns about finance, health and quality and safety, ethics, and even legal liability, that's a harder one for us to consider," Austin said.
This year, four maternity units have closed at Maine hospitals. Nurses who spoke to the commission said they'd like the state to require public hearings before hospitals terminate services.
The commission is also evaluating the role of private equity firms taking ownership of hospitals, which has been found to drive up costs and lower the quality of care.
Geoff Gratwick of Bangor, a former lawmaker and retired rheumatologist, compared private equity to gangrene.
"It starts very slow," he said. "It's insidious. But eventually it can result in the death of the host. It has been the case elsewhere. We've had warning signs about what this particular gangrene can do."
Gratwick urged the commission to pursue bold changes, and not merely apply bandages to a health care system he says is hemorrhaging.
Portland attorney Peter Murray told the commission that the state has the authority to exclude private equity from ownership because hospitals receive public funding.
"You can indeed adopt requirements that a person who is going to take over particular kinds of health care facilities in the state of Maine be a non-profit character," Murray said.
But the Maine Hospital Association cautioned the commission against recommending blanket bans on a specific class of owner.
The commission will next meet on October 22. It must submit a report to the legislature's Health Coverage, Insurance, and Financial Services Committee by December 10.
