File photo / Amber Waterman
Steven Michaud, president of the Maine Hospital Association
Updated: June 29, 2023
$25M in state funding to help Maine hospitals hurt by COVID
Maine hospitals will receive a last round of $25 million in state funding to tackle pandemic-related challenges including recruiting and retaining staff, Gov. Janet Mills announced Wednesday.
The funding, issued through the Maine Department of Health and Human Services, follows a $25 million supplemental payment to hospitals last October.
“Maine hospitals were indispensable partners throughout the pandemic. The work of their health care professionals saved lives then, just as it is saving lives now,” Mills said. “This investment will advance hospitals’ recovery and support the quality care that Maine people expect and deserve.”
Mills proposed both sets of payments as part of her emergency fiscal 2023 supplemental budget, which lawmakers passed with bipartisan support in February.
This last payment is being issued to help Maine hospitals regain their footing as they cope with industry-wide staffing challenges.
“Maine hospitals are thankful to the governor and the Legislature for recognizing the great financial burden the COVID pandemic and its aftermath has placed on the health care system,” said Steven Michaud, president of the Maine Hospital Association. “This increase in funding comes at a critical time as we continue to address the workforce shortages the pandemic left in its wake.”
Hospitals received payments from the $25 million proportional to their pre-pandemic MaineCare revenue.
The funding may be used through July 1, 2024, the date that new hospital MaineCare rates are expected to begun, funded with $22.5 million proposed by Mills and expected to pass the Legislature, is anticipated to begin.
DHHS has proposed funding to increase hospital inpatient reimbursement rates through MaineCare as part of its nationally recognized transformation of Maine’s rate-setting system.
With this week’s payment, the Mills administration has directed more than $100 million in COVID-19 supplemental payments to Maine hospitals throughout the pandemic.
Additionally, the federal government has directly made more than $600 million available to Maine hospitals.
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