Thedailymiaminews-LEWISTON- It has been announced that a nonprofit organization based in California intends to take over operations at Central Maine Healthcare, with the promise of making significant investments in the facilities.
Wednesday was the day that the acquisition agreement was made public.
Prime Healthcare Services, a non-profit corporation with its headquarters in California, will assume control of the operations at Central Maine Medical Center, Rumford Hospital, Bridgton Hospital, and any other institutions owned by Central Maine Healthcare in the event that the acquisition is successful.
Prime has pledged to making an investment of $150 million in the buyout, which comes at a time when hospitals in Maine are experiencing financial difficulties.
The president of the Maine Hospital Association, Steven Michaud, stated that the current situation is causing a decline in the quality of services, a reduction in access, and that some of our hospitals and systems are experiencing difficulties.
The post-pandemic staffing shortfall and rising economic inflation have been a financial gut punch for healthcare professionals, according to Michaud, who added that this has been a gut hit for them.
CMMC is not exempt from that as well. In the previous year, the hospital sold two of its buildings and downsized its workforce by 45 personnel. According to the Sun Journal, CMMC had a deficit of twenty million dollars by the end of the year 2023.
According to Dr. Rebecca Brakeley, who is serving as the interim chief medical officer at Central Maine Health, “I believe that the frustration that we felt was simply due to the fact that we did not have access to all of the infrastructure that we require in order to effectively support and fulfill our jobs in order to serve the community.” Having access to this alliance will provide the means for that to become a reality.
The Prime Healthcare Foundation is managed by Prime Healthcare Systems, a hospital conglomerate that oversees the operations of 44 hospitals located all throughout the United States.
In the past, the corporation has been involved in a number of scandals, including three settlements with the federal government, the most of which were related to allegations of Medicaid fraud.
Even while Prime did not admit to any wrongdoing, the company did pay a settlement of $65 million and agreed to participate in a compliance program that would last for five years and include increased federal monitoring.
Despite the fact that Michaud did not comment on the company’s settlements, he did say that the investment in Maine comes at a crucial moment for the healthcare system in the state.
According to Michaid, “This level of investment has the potential to and would restore, if not expand, access to a wide range of essential services.”