Penobscot Community Health Care announced Thursday that it will receive $2.8 million from the state. As a result, the organization is no longer considering bankruptcy.
The money for the struggling nonprofit healthcare organization will come from the Rural Health Transformation Program. PCHC said the funds will “help ensure the future of PCHC and our critical work for the people of Maine.”
“Specifically, they will increase the support for our transition earlier this year to a new electronic medical records system and to alternative payment models,” the organization said.
PCHC is Maine’s largest federally qualified health center, serving roughly 50,000 patients.
The organization, which is considered a safety net provider for low-income Mainers, announced in August that it needed $3 million in the next two months to avoid drastically cutting services or declaring bankruptcy.
On Thursday, PCHC said it is no longer pursuing an imminent Chapter 11 filing.
“That is a significant step forward. But the next 12 months will be critical, and we have a great deal of work ahead to put PCHC on solid financial ground,” the organization said.
