SANFORD — Maine hospitals, including Goodall Hospital in Sanford, are suffering because the state hasn’t fully paid reimbursements for care it provides to Medicaid patients, rally-goers said Thursday.
Hosted by Maine Republicans, about two dozen people, including GOP candidates for the state Legislature, gathered in Central Park at noon to draw attention to the $380 million debt owed to hospitals across the state.
Goodall Hospital, the town’s largest employer, is owed about $8.7 million. The state is responsible for about one-third of the debt and the federal government pays its share ”“ which is about two-thirds ”“ only after the state pays its obligation, Sen. Jon Courtney explained.
Similar rallies were held in Augusta, Bangor, Presque Isle and in Lewiston, where GOP gubernatorial candidate Paul LePage said the debt grows as time passes.
“It’s getting worse to the tune of a couple of million dollars a month,” said LePage.
In Sanford, Courtney, who is seeking a fourth Senate term, said the Legislature last session missed opportunities to pay back more of the debt.
He said about $55 million was paid to Maine hospitals last year using some federal stimulus money ”“ but he added it wasn’t enough.
“The tab is $380 million,” he said. And Goodall Hospital in Sanford has a high number of patients who use MaineCare, the state’s name for Medicaid, he said.
In January 2009, Goodall Hospital announced mid-year budget cuts that included the elimination of 30 full-time equivalent positions to save $2 million. Several months later, they announced salary reductions to all employees ranging from 4 percent to 20 percent. Wages were restored several months ago.
Hospital President Darlene Stromstad has previously said that Sanford has one of the highest percentages of MaineCare patients in Maine, at 21 percent.
Democrats, who hold legislative majorities, acknowledge the debt of about $380 million to the hospitals, but say it started piling up before Gov. John Baldacci took office in 2003. Democrats also say a repayment schedule has been in place since 2006 and the latest two-year state budget ”“ approved with Republican votes ”“ includes $132 million in hospital settlement payments.
“The hospitals have been first in line to get their money for eight years,” said David Farmer, spokesman for Baldacci. “There’s been a continuing commitment to work with the hospitals by the governor and the Legislature.”
At the Sanford rally, former Goodall Hospital board member Robert Hardison said the debt owned to Goodall goes back to 2007.
“It continues to build each and every day,” said Hardison, who added the hospital is starting to feel the effects of the lack of reimbursements.
Stromstad outlined the debt in an e-mail response to questions. Hospital officials did not attend the rally.
“We are owed $8.7 million, dating back to 2007,” wrote Stromstad. “That is the settlement amount owed to us through end May 31. The settlement debt accumulates at about $3 million a year. If MaineCare grows, the settlement amount grows incrementally.”
She said Goodall Hospital received $1.7 million last October, a partial payment owed for the fiscal year that ended May 31, 2007.
“As you know, for a hospital our size with a sizable MaineCare volume, it hurts us,” said Stromstad. “While we were very proud to be able to reinstate salaries this fiscal year, we are not giving raises and we didn’t return a week of vacation or all the pension contributions. We are not spending a dollar we don’t absolutely have to spend. We continue to postpone capital projects. This $8.7 million owed Goodall Hospital would benefit our patients, but also our employees and our community.”
Goodall Hospital is Sanford’s largest employer, with about 950 full and part-time employees.
LePage, in Lewiston, said that as governor, he would seek to pay off the $380 million debt during the two-year budget cycle starting next July. He estimates that $65 million each year in state money would draw sufficient matching funds from Washington to settle the debt.
Democrat gubernatorial candidate Mitchell drew indirect fire from LePage, who said the Legislature under her leadership as Senate president has let the debt grow larger by reimbursing hospitals at too low a rate and allowing overly generous eligibility standards for MaineCare.
— Staff Writer Tammy Wells can be contacted at 324-4444 or twells@journaltribune.com. The Associated Press contributed to this report.
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