MaineGeneral Medical Center said it’s laying off about 100 employees next month, and the hospital is blaming temporary cuts to state reimbursements as the reason why.
It comes after a fight over state funding that ended last week with a partisan budget that will force hospitals to wait 90 days for their full MaineCare payments.
The state began limiting reimbursements for hospitals on March 12, and MaineGeneral Health said the cuts are costing the hospital $600,000 a week.
“They have taken a fairly dramatic step,” Maine Hospital Association spokesperson Jeff Austin said.
MaineGeneral CEO Nathan Howell said the lack of reimbursement from the state is exacerbating an already challenging financial situation. As a result, the hospital is laying off 100 employees.
“The current crisis in MaineCare funding compounds an already tenuous financial footing for MaineGeneral and other hospitals in the state,” Howell wrote in a statement.
After emergency funding failed to gain enough Republican support in the Legislature, Democrats passed a state budget last week that fills a $118 million gap in the state’s Medicaid program. But the budget didn’t pass as an emergency, so hospitals won’t be paid until late June.
“Some of our members are in that position now, where the ability to reach into another pocket and find a pot of money is gone,” Austin said.
It’s not just MaineGeneral that is weighing cuts.
“I talked to the folks at Penobscot Valley Hospital last week. They’re seeing $26,000 a week in cuts,” Sen. Mike Tipping, D-Penobscot, said. “That’s a 25-bed hospital. That’s not something that can be sustained.”
As hospitals struggle to stay afloat, advocates are pressing lawmakers to find an immediate solution that covers providers through June.
“I’m open to anything that would make sure we keep these hospitals open and operating,” Tipping said.
Republicans did not support the budget and say Democrats “own” the problem of hospitals not getting paid on time. The party was planning to hold a press conference on the issue Tuesday.