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March 18, 2009

Guv sends $45M to hospitals

By The Mainebiz News Staff

The governor yesterday signed an order to pay Maine's hospitals $45 million as part of a settlement reached between the hospitals and the state in 2006.

Gov. John Baldacci announced the move in a press conference at the State House, alongside bipartisan legislators, representatives from Maine's congressional delegation and members of the Maine Hospital Association, according to a press release from the governor's office. The money comes from the federal stimulus bill, and will draw down $163 million in state and federal matching funds. The governor has also submitted a proposal to the Legislature to provide an additional $57 million to the hospitals that, with federal matching funds, would equal further payment to hospitals in 2010 of $210.7 million.

The $373.7 million promised and proposed is part of the governor's four-year plan to increase hospital reimbursements and settle outstanding payments the state owes the hospitals.

 

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