EMMC faces $7M budget shortfall
Bangor-based Eastern Maine Medical Center faces a $7 million shortfall, which hospital officials attributed to shrinking government reimbursements, fewer patients and an increase in unpaid care.
The Bangor Daily News reported the operating loss came from lower-than-expected revenues in January and February, five months into the hospital’s fiscal year. The hospital had budgeted for less charity care and bad debt as more Maine residents signed on for health insurance under the federal health care reform law, the newspaper reported.
Deborah Johnson, EMMC’s president and CEO, told the newspaper that the medical center is reviewing its operations and working on efficiency improvements and said she’s uncertain if there will be layoffs. Johnson said the hospital has 170 open positions that could be left unfilled to help reduce expenses this year.
The shortfall comes as the hospital’s parent organization, Eastern Maine Healthcare Systems, is undertaking a $250 million expansion and modernization at the Bangor campus, funded by about $155 million in bonds, $100 million in cash and equity and around $20 million from private fundraising. Johnson said that project will move ahead as planned.
Most Recent
Most Recent
Comments