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September 22, 2010

Central Maine Healthcare lays off 35

By The Mainebiz News Staff

Central Maine Healthcare in Lewiston is laying off 35 workers and cutting administrators' pay as part of its plan to shave $11 million from its budget.

The parent organization of Central Maine Medical Center yesterday announced the plan, which includes laying off seven managers and 28 non-management employees, and cutting pay for administrators, including CEO Peter Chalke, by 8%, according to the Sun Journal. Another 16 managers will be demoted and 45 vacant positions will be eliminated as well. The organization attributed the cuts to a drop in patient volume, fewer patients paying their bills and $56 million the state owes it in MaineCare payments going back to 2007. Department of Health and Human Services Commissioner Brenda Harvey told the paper that the state is working to repay that debt, and that hospitals in 2008 received a total of $920 million in General Fund and federal stimulus money as payment and agreed not to lay off staff for an undefined amount of time. A meeting between CMH administrators and Gov. John Baldacci to discuss MaineCare payments is planned for next week.

In July, CMH eliminated raises and reduced vacation time for its 3,200 employees. The newest cost-cutting effort also includes renegotiating vendor contracts, and reducing work hours and benefits for employees, according to the paper.

Go to the article from the Sun Journal >>

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