State OKs Pen Bay, MaineHealth merger
The Maine Department of Health and Human Services has approved Pen Bay Healthcare's merger with MaineHealth of Portland.
The Rockport-based health care organization announced Tuesday that DHHS Commissioner Brenda Harvey signed off on the merger's certificate of need and certificate of public advantage, according to the Herald Gazette. State approval includes conditions that the organization file reports for three years showing savings resulting from the merger, and that Pen Bay must realize $1 million in administrative savings during the first 36 months. MaineHealth has agreed to contribute $3 million to Pen Bay's efforts to institute electronic medical records, and Pen Bay will owe 0.45% of net operating revenues to Maine Health, which will equal $675,000 in the first year, according to the paper.
The merger still needs approval from the Federal Trade Commission, which Pen Bay hopes to receive by the end of the month. Pen Bay's incorporators voted to support the merger in January.
Go to the article from the Herald Gazette >>
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