Processing Your Payment

Please do not leave this page until complete. This can take a few moments.

Updated: 6 hours ago

Citing rising costs and state budget delay, MaineGeneral to lay off 100 employees in April

Mainebiz file photo MaineGeneral Health, a nonprofit health system anchored at MaineGeneral Medical Center in Augusta, plans to lay off 100 full-time employees in April.
By Renee Cordes

Citing rising costs and low Medicaid reimbursements, MaineGeneral Health said it plans to lay off 100 full-time employees in mid-April.

Nathan Howell of MaineGeneral Health
Photo / Courtesy of MaineGeneral Health
Nathan Howell

“The current crisis in MaineCare funding compounds an already tenuous financial footing for MaineGeneral and other hospitals in the state,” Nathan Howell, the hospital’s president and CEO, said in a statement emailed to Mainebiz.

Howell said budget delays at state level represent a "financial hit” that is costing the system around $600,000 per week.

“We need to find a way to mitigate those losses as quickly as possible,” he said.

MaineGeneral, a nonprofit health system based in Augusta, employs nearly 5,000 people across several locations, including the 198-bed MaineGeneral Medical Center. That facility is the state's seventh largest hospital in the 2025 Mainebiz Book of Lists, whose rankings are based on the number of acute care beds. 

“Maine’s nonprofit hospitals are challenged by declining reimbursement rates from payers – reimbursement rates are not covering the actual cost of care,” Howell explained. "Additionally, we are experiencing excessive denials, especially from Medicare Advantage plans. The cost of doing business is increasing, which is not unique to health care.”

A spokeswoman for the nonprofit was unable to provide details about what roles are set to be eliminated, since the details are still being worked out.

Other cost-cutting measures

The news comes less than two weeks after Northern Light Health announced plans to close Northern Light Inland Hospital and its associated clinics in Waterville.

MaineGeneral said that in addition to the planned workforce reduction, it has taken several other actions to mitigate losses to address the current budget shortfall and into the next fiscal year that is set to start on July 1.

Those include putting a hold on out-of-state employee travel, holding off on filling open positions that are not necessary for the provision of health services, reviewing the remaining budget for the fiscal year and putting a freeze on spending.

MaineGeneral has also paused sponsorships.
 
“We believe doing this difficult work now will set us up for a more financially sustainable future, as we want to remain independent and available to meet the health care needs of our community now and into the future,” Howell said.
 

Sign up for Enews

Mainebiz web partners

Most Recent

Most Recent

Related Content

Thumbnail Robots and simulators: Two Maine organizations have advanced tech in mind for health care
Thumbnail MaineGeneral promotes long-time Maine administrator to CEO post
Thumbnail Latest Maine Hire-A-Vet campaign yields 186 hires
Thumbnail Closing the rural health care access gap in Jackman, and maybe beyond

0 Comments

Order a PDF