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V O L . X X X I N O. X V J U LY 1 4 , 2 0 2 5 14 H E A LT H C A R E / W E L L N E S S F O C U S 'Skyrocketing' costs In May, Waterville's 48-bed Northern Light Inland Hospital closed after transitioning patients to new care locations. e health system has medical clinics in the area that remain open as part of other hospitals; as well as Northern Light Continuing Care Lakewood, a continuing care center in Waterville. Most of the 300-plus employees were redeployed to other Northern Light hospitals and sites. Plans include selling the Waterville property. Reasons for the closure included operating losses of $1 million to $1.5 million per month, unsustainably low reimbursement rates and a tight labor market as the reasons for the closure. e closure was expected to allow Northern Light Health to direct Inland's resources to its other locations. Northern Light said it's trying to reverse steepening financial losses across the system. Operational losses have averaged over $100 million per year over the last three years; Northern Light has debt of $620 million. Many patients are older or economically dis- advantaged; 66% are insured by Medicaid, known in Maine as MaineCare, or by Medicare. Since 2020, overall expenses increased 20%, while Medicare and Medicaid in-patient reimbursement rose only 7.5%. Northern Light has also had to absorb the "skyrocketing" cost of clinical talent, particularly as the system relies on contract labor due to per- sonnel shortages. Tim Dentry, Northern Light's president and CEO, said strategies to achieve financial sustain- ability will likely include evaluating the system's workforce and leadership structure and trying to maximize revenue opportunities. No other hospitals will be closed as a part of that work, he said, but some services at some loca- tions could change. ICU suspended St. Mary's Hospital in Lewiston decided last year to suspend its intensive care unit, based on consis- tently low patient volume and the availability of services at neighboring hospitals. Lewiston's second-largest health care pro- vider continues to invest in areas of greatest need, including expanding access to behavioral health, primary care and emergency services. at includes the launch of a Day Hospital Program, a struc- tured outpatient mental health service for adults who need more support than weekly therapy but do not require inpatient care; the Center for Recovery, providing same-day substance use evalu- ations and personalized treatment planning; and adding new primary care providers. Layoffs In April, MaineGeneral Health identified 148 positions where the health system could achieve cost savings or restructuring. Of those, 54 were unfilled or open positions that weren't filled; 60 employees were offered redeploy- ment, 14 had a reduction in hours and 20 had their positions eliminated. e organization cited rising costs and low Medicaid reimbursements. e nonprofit health system based in Augusta employs nearly 5,000 people across several locations. 'Unsustainable' Effective April 1, labor and delivery services at MaineHealth Waldo Hospital in Belfast were moved 22 miles south to the MaineHealth Pen Bay Hospital Family Birth Center in Rockport. All other pre- and postnatal services remain available at MaineHealth Obstetrics and Gynecology Belfast. e decision came following a months-long review of the obstetrics program and community outreach. e hospital said a central issue making con- tinuation of the services unsustainable was consis- tently low birth volume at Waldo, where deliveries fell to 109 in 2023, a 20.4% decline from 2019. Recruiting and retaining staff were also dif- ficult, amid a nationwide shortage of health care workers of all kinds. MaineHealth, the state's largest health care system, has said it sought to address staff short- ages with aggressive recruiting, higher pay and investments in clinical education. But the chal- lenges are particularly acute in rural settings, and MaineHealth Waldo Hospital has faced persistent shortages in pediatric providers, anesthesia cover- age and nurses. e changes to OB services came at a time when MaineHealth Waldo Hospital is expand- ing overall services, with a particular focus on the needs of a growing population of older people. Over the past two years, that's included expanded cardiology and oncology services in Belfast. e hospital said it worked with OB members to help them transition to other opportunities. Inadequate reimbursements Obstetric units have been closing throughout the U.S. in recent decades, especially in rural areas, We're not asking for more money. We're saying, 'Stop the cutting.' — Steven Michaud Maine Hospital Association » C O N T I N U E D F RO M P R E V I O U S PA G E Financial instability Maine hospitals rank among the nation's lowest in key financial health indicators. Maine's prospective payment system hospitals (PPS) ranked fifth poorest. PPS hospitals ranked second most heavily in debt. Maine ranked 46th in average age of facility. Critical access hospitals show relative financial resilience, but also at risk. S O U R C E : "Financial Analysis of Maine's Hospitals 2025," PYA Acquisition in the works C entral Maine Healthcare, with facilities includ- ing Central Maine Medical Center in Lewiston and Bridgton and Rumford hospitals, agreed in January to be acquired by the Ontario, Calif.-based nonprofit Prime Healthcare Foundation. The acquisition is expected to close by the end of 2025, subject to regulatory approvals. CMH facilities would retain their names and local leadership. Prime has agreed to invest $150 million in the facilities over the next five years and to continue and expand services based on community needs. S t ev e L i t t l e s o n , C E O o f C e n t r a l M a i n e Healthcare, said the deal is expected to result in capability and resources to attract and retain talent, improve access to care and address unmet health care needs across central Maine. P H O T O / C O U R T E S Y O F C E N T R A L M A I N E H E A LT H C A R E Central Maine Medical Center is in Lewiston.

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