July 14, 2013

Hospitals make plans for MaineCare payments from state

By Kaitlin Schroeder kschroeder@centralmaine.com
Staff Writer

Hospitals in central Maine are reporting they plan to use the millions of dollars in repaid MaineCare funding to pay down debt, invest in new technology and embark on capital improvement projects. 

MaineGeneral Health Chief Financial Officer Mike Koziol said being repaid $38 million in MaineCare reimbursements will allow its network to settle short-term debt and put money aside for the future. 

The money also will go toward the $312 million construction and equipment costs of the MaineGeneral hospital under construction in north Augusta and the $10 million renovation scheduled to begin in January at the Thayer campus in Waterville.

He said Maine hospitals could not have continued much longer without repayment.

“This is a big deal. If this didn’t happen, it would have been detrimental,” he said.

Officials from Eastern Maine Healthcare System, the parent company for Sebasticook Valley Health in Pittsfield and Inland Hospital in Waterville, said the money will go toward paying down debt and capital improvement.

The network of seven hospitals is owed $108 million, with $9.4 million owed to Inland and $1.4 million owed to Sebasticook.

Senior Vice President and Chief Financial Officer Derrick Hollings said in a statement the health group has no specific plans for the money yet, but it expects to use the money to catch up on financial obligations such as repaying vendors and paying loans.

He also said some of the money probably will go toward delayed capital investments such as maintenance, plant improvements and equipment replacement.

Were you interviewed for this story? If so, please fill out our accuracy form

Send question/comment to the editors

Further Discussion

Here at KJonline.com we value our readers and are committed to growing our community by encouraging you to add to the discussion. To ensure conscientious dialogue we have implemented a strict no-bullying policy. To participate, you must follow our Terms of Use.

Questions about the article? Add them below and we’ll try to answer them or do a follow-up post as soon as we can. Technical problems? Email them to us with an exact description of the problem. Make sure to include:
  • Type of computer or mobile device your are using
  • Exact operating system and browser you are viewing the site on (TIP: You can easily determine your operating system here.)