Maine Governor to Repay $186M Medicaid Debt to Hospitals

Maine Gov. Paul LePage (R) has announced the state will repay roughly $186 million in Medicaid payments owed to 39 hospitals through a revenue bond, according to a Portland Press Herald report.

Maine hospitals are currently owed $484 million in overdue Medicaid payments. The $186 million from the state will be matched by $298 million from the federal government.

Gov. LePage said the plan would be paid for by the state retaking control over liquor sales, according to the report. Ten years ago, Maine agreed to a deal with a contractor, which took over the handling of liquor sales. Gov. LePage called that move an "enormously bad decision," and taking back liquor sales could net the state hundreds of millions of dollars in extra revenue within the next decade, according to the report.

Several hospitals across the state have had unpaid bills topping $50 million. Eastern Maine Medical Center in Bangor is owed the most — $76 million.

EMMC CFO Mel Doucette told the Maine Public Broadcasting Network that because the state has been so behind on Medicaid payments, the hospital has had to delay capital improvements and payments to vendors, a trend seen at other state hospitals as well.

More Articles on Maine Medicaid:

CMS Limits Maine's Medicaid Reductions
Maine Hospitals Press State for $484M Owed by Medicaid
Maine's Governor Says HHS is Using "Political Delay" on Medicaid Cuts

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