SENATE UNANIMOUSLY BACKS FINAL PAYMENT TO MAINE’S HOSPITALS

Measure is Legislature’s second attempt to repay hospitals

AUGUSTA — The Senate voted unanimously in a vote of 35-0 to approve a measure that makes the state’s final payment on Maine’s hospital debt and renegotiates the state’s liquor contract.

“We have done our job today and paid our bills. Now we must continue to work to make sure we never get back in this position again and we must all be committed to strengthening our healthcare system,”said Senate Majority Leader Seth Goodall of Richmond. “It’s time to finish our work and addresses the true cost drivers in our healthcare system.”

This bill makes the final payment of $183.5 million to Maine hospitals triggering a federal match totalling $490 million in state and federal dollars. By paying the hospitals prior to October 1, 2013, the state will save $5 million. 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.

The bill is the second measure passed this session to make a final payment to Maine’s hospitals. Governor Paul LePage vetoed the Legislature’s first hospital repayment bill, LD 1546, last month.

Over the last few months, Governor LePage has refused to release voter approved bonds until his hospital repayment bill reaches his desk for his signature.

“It’s past time for the governor to release the bonds,” said Assistant Senate Majority Leader Troy Jackson of Allagash. “Stop the rhetoric, quit kidding around and making up these false excuses and let people work.”

In the last few weeks, the Governor has reiterated his promise to release the bonds. A May 23 press release stated that “as a gesture of good faith, the Governor directed the State Treasurer to prepare the voter-authorized bonds for his signature,” and said he will “sign them as soon as this new Governor’s Bill is enacted.”

On June 11th, the Governor added, “Let’s get that vote, let’s get the hospitals paid…so I can release job-creating bonds before the entire construction season ends this summer.”

Jackson added, “I agree with the Governor that it’s high-time to release the bonds, I just don’t understand what has taken him so long”

The bill, LD 1555, “An Act To Strengthen Maine’s Hospitals and To Provide for a New Spirits Contract,” will now go to the governor for his signature.

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