Citing rising costs and other financial challenges, Penobscot Community Health Care said it will close its Adult Wellness Center practice in Bangor later this year, eliminating 16 jobs.
The Bangor-based nonprofit, led by President and CEO Lori Dwyer, said the decision to close the practice and move services to other locations is part of a broader effort to ensure the long-term sustainability of its mission.
Most patient care services currently provided at the Adult Wellness Center will be transferred to PCHC’s Center in Bangor, while some specialty services will relocate elsewhere within the organization.
“Like health care organizations across the country, PCHC continues to face significant financial pressures, including reimbursement challenges, rising operational costs and ongoing uncertainty in the health care environment,” the provider said in a statement emailed to Mainebiz.
“In evaluating options for maintaining access to care while improving financial sustainability, PCHC determined that consolidating services and reducing administrative and facility-related costs was a necessary step,” it added.
The move comes after Dwyer laid out the organization’s financial predicament in an op-ed published last month in the Bangor Daily News, saying an infusion of roughly $3 million is needed in the next 30 to 60 days. She also said the company is preparing for every contingency, including filing for Chapter 11 bankruptcy protection.
“Penobscot Community Health Care’s financial future is at serious risk,” Dwyer warned. “Without a capital infusion in the very near term, we will be forced to make choices to curtail services and locations. Access to care will suffer for the people who depend on us most. While we intend to keep our doors open, stabilizing requires help we cannot secure on our own.”
While the organization did not give details about what jobs are being eliminated, it did say that affected employees are being offered opportunities for non-competitive transfers where available or severance packages. It also said that 11 employees will transfer to new roles or locations within the organization.
A spokesman for Penobscot Community Health Care said the Adult Wellness Center in Bangor is scheduled to close on Nov. 6.
The organization said it does not anticipate any significant disruption to patient care as a result of the changes, underscoring that patients will continue to receive care from their provider and care teams wherever possible.
About PCHC
Penobscot Community Health Care is a nonprofit, federally qualified health center founded in 1997.
The organization has a total of 20 practices and program and service sites, including locations in Bangor, Brewer, Old Town, Belfast and Jackman. It is staffed by around 850 employees and opened a dental clinic in Belfast earlier this year.
Locations offer family medicine, dental care, pediatrics, health care for seniors, mental health and substance abuse services, specialty services, pharmacy and health care for unhoused individuals.
