BUDGET PANEL UNANIMOUSLY BACKS FINAL PAYMENT TO MAINE’S HOSPITALS

Posted: June 11, 2013 | Front Page, Senator Hill

AUGUSTA — Lawmakers on the State Legislature’s Appropriations and Financial Affairs Committee on Tuesday afternoon unanimously approved a measure to make a final payment on Maine’s hospital debt and refinance the state’s liquor contract.

“Today we are one step closer to another attempt at paying back the hospitals,” said Senator Dawn Hill, D-York, the Senate Chair of the Appropriations Committee. “Recently, the governor vetoed our last effort. We all agree that we need to make the final payment to our hospitals, and it’s important we make the payment in a timely manner.”

The bill is the second measure passed this session to make a final payment on Maine’s hospital debt. Governor Paul LePage vetoed the first, LD 1546, last month. This bill makes the final payment to Maine hospitals totaling $485 million in state and federal dollars. By paying the hospitals prior to October 1, 2013, the state will save $5 million. The payment would trigger a federal match of $298 million, completing final payment to Maine’s hospitals.

“This final payment closes a decade long chapter of repaying our debt to Maine’s hospitals,” said Rep. Peggy Rotundo, D-Lewiston, the House Chair of the Appropriations Committee. “Our hospitals are key to the health of our community and this final payment makes good on the lifesaving work that our nurses and doctors do for Maine families.”

Over the last decade, Maine hospitals have been paid $3.7 billion in combined state and federal dollars to repay past debt and to maintain services.

Governor John Baldacci inherited 11 years of unpaid hospital debts on his first day in office.  In 2009, Democrats changed the way Maine pays its hospitals to a “pay as you go system” to prevent the cycle of debt.  In 2010, the Democratic system went into effect and has been administered by the Republican Administration.

The bill, LD 1555, “An Act To Strengthen Maine’s Hospitals and To Provide for a New Spirits Contract,” will now be sent to the Legislature for approval.

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