State Budget Cuts Could Threaten PVH


January 13, 2009


“The latest cuts proposed in the legislature could cripple small, rural hospitals in the state,” says CEO of Penobscot Valley Hospital David A. Shannon. Earlier this month, Shannon testified before lawmakers in Augusta who are considering the cuts which would result in a loss of nearly $700,000 a year for the Lincoln Hospital alone. “These are wide-reaching reductions to the health care industry in Maine, especially the Critical Access Hospitals in rural areas, which are already struggling to maintain services,”


The hearings were part of the review process for Governor Baldacci's supplemental budget, which would result in a $33 million a year loss for Maine’s hospitals. That’s on top of the more than $424 million state and federal that is still owed to hospitals by MaineCare for care provided to MaineCare patients dating back to 2005.

The governor’s proposal would reduce the payments to Critical Access Hospitals from 117% of costs to 101%. This may sound like a reasonable adjustment, however, in 2005, the Maine Legislature increased the MaineCare reimbursement for Critical Access Hospitals by 16% specifically to provide the “match” to these hospitals under the state’s tax and match program. “Not only is this a huge cut to the state’s smallest hospitals,” says Shannon. “But it’s completely contrary to the legislature’s own acknowledgment that these hospitals need a higher reimbursement to help offset the tax.”

PVH is the second largest employer in the Lincoln Lakes Region. “These are difficult financial times for all of us--business, nonprofits, and families,” says Shannon. “These cuts could force our hand to reduce important services or positions. We cannot afford additional cuts to reimbursements.” Shannon also says the state budget cuts will have a negative effect on physician recruitment. “We already have more than 200 physician vacancies in Maine hospitals.”

“We’re asking people in the region to take a stand with us,” says PVH Chief Financial Officer Ann Marie Rush, who specifically asked that people contact members of the Maine Legislature’s Appropriations and Health and Human Services Committee. “Please let your legislators know these budget cuts to hospital reimbursements are a poor choice for Mainers. This proposed quick fix could lead to much more complicated and difficult financial troubles in the future.”

For a complete copy of Shannon’s testimony before legislators in Augusta, please click here.

For a list of the emails of the Appropriations and Health & Human Services Committee Memebers, see below:

Senator Margaret M. Craven (D-Androscoggin)               

Senator Richard W. Rosen (R-Hancock)              

Representative Emily Ann Cain (D-Orono), Chair     

Representative John L. Martin (D-Eagle Lake)            

Representative David Webster (D-Freeport)               

Representative Margaret R. Rotundo (D-Lewiston)     

Representative Elizabeth S. Miller (D-Somerville)        

Representative Gary A. Connor (D-Kennebunk)          

Representative H. Sawin Millett, Jr. (R-Waterford)*     

Representative Robert W. Nutting (R-Oakland)                       

Representative Patrick S. A. Flood (R-Winthrop)          

Representative John C. Robinson (R-Raymond)          

 http://www.mainesenate.org/diamond/email.htm   

 http://www.mainesenate.org/craven/email.htm   

rrosen113@aol.com

RepEmily.Cain@legislature.maine.gov

RepJohn.Martin@legislature.maine.gov

RepDavid.Webster@legislature.maine.gov

mrotundo@bates.edu

RepLisa.Miller@legislature.maine.gov

RepGary.Connor@legislature.maine.gov

RepSawin.Millett@legislature.maine.gov

bob@bobnutting.com

RepPatrick.Flood@legislature.maine.gov

RepJohn.Robinson@legislature.maine.gov

Senator Lisa T. Marraché (D-Kennebec)                      

Senator Peter Mills (R-Somerset)                                

Representative Anne C. Perry (D-Calais), Chair                        

Representative Patricia Jones (D-Mount Vernon)        

Representative Mark Eves (D-North Berwick)              

Representative Matthew J. Peterson (D-Rumford)      

Representative Linda F. Sanborn (D-Gorham)             

Representative Peter C. Stuckey (D-Portland)             

Representative Sarah O. Lewin (R-Eliot)*                    

Representative James J. Campbell, Sr. (R-Newfield)   

Representative Meredith N. Strang Burgess (R-Cumberland)   

http://www.mainesenate.org/marrache/email.htm    

Representative Donald G. Soctomah (Passamaquoddy Tribe)

 http://www.mainesenate.org/brannigan/email.htm 

 pmills@mainelegal.net

RepAnne.Perry@legislature.maine.gov

RepPat.Jones@legislature.maine.gov

petersonhouse08@gmail.com

RepLinda.Sanborn@legislature.maine.gov

RepPeter.Stuckey@legislature.maine.gov

RepSally.Lewin@legislature.maine.gov

jscampbell@psouth.net

soctomah@ainop.com

RepMeredith.StrangBurgess@legislature.maine.gov