ROCKPORT, Maine — The proposed merger of Pen Bay Healthcare and Waldo County Healthcare should be approved, according to a preliminary recommendation from a state agency.

The final decision from the commissioner of the Maine Department of Health and Human Services is expected later this year.

The certificate of need unit within the department, however, issued a preliminary analysis on Sept. 8 in which it recommended the merger. The merger would create one parent corporation to oversee both organizations that serve primarily Knox and Waldo counties.

The merger will result in improved quality of health care as well as more effective or less costly services, according to the DHHS analysis.

Currently the two corporations each have their own board of directors. If the merger receives final approval, one new board of directors would be created on Jan. 1 to oversee the two organizations.

Pen Bay Healthcare is the parent corporation of the 99-bed Pen Bay Medical Center in Rockport; the Quarry Hill development in Camden; the Knox Center for Long Term Care in Rockland; Kno-Wal-Lin home health and hospice care which serves Knox, Waldo and Lincoln counties; the Sussman House hospice center in Rockport; and nearly all the physician practices in Knox County.

Waldo County Healthcare is the parent corporation of the 25-bed Waldo County General Hospital in Belfast; Waldo County Home Healthcare Services; Belfast Public Health Nursing Association; Coast Medical Care; Arthur Jewell Community Health Center in Brooks; Donald S. Walker Health Center in LIberty; Lincolnville Regional Health Center; Searsport Health Center; and Stockton Springs Regional Health Center.

Both Pen Bay and Waldo County are subsidiary corporations of MaineHealth, which is the parent organization of numerous hospitals, nursing homes and other health-care organizations in southern and central Maine, with the largest being the 606-bed Maine Medical Center in Portland.

MaineHealth had argued that the merger did not require a review by the state, but after consulting with the Attorney General’s Office, DHHS decided the proposal would have to go through the formal regulatory review process.

The two organizations already have the same chief executive officer. Mark Biscone has been head of the Waldo County hospital for more than 31 years. He was appointed Pen Bay’s interim CEO in March 2014.

The two midcoast area health organizations have integrated more than 40 programs. The two hospitals are sharing services and positions that include laundry, marketing and communication, nephrology, home health and hospice, urology, vascular surgery, infectious disease physicians, a chief medical information officer, electronic information, a cardiopulmonary department manager, coverage for the radiology manager’s medical leave, a dentist, grant writing, speech therapy, telepsychiatry service, oncology, an echo sonographer and telestroke services.

The sharing of oncology services generated considerable concern last year when it resulted in a reduction of staff oncologists.

Pen Bay became a member of MaineHealth in 2012. Waldo County became part of MaineHealth in 2009.

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