Pen Bay Healthcare cuts eight jobs in cost-saving action

Posted Feb. 22, 2012, at 4:25 p.m.

ROCKPORT, Maine — Pen Bay Healthcare announced on Wednesday, Feb. 22, that it has cut eight jobs and will look at more cost-saving measures in preparation for reduced revenues from the MaineCare program.

Five employees at Pen Bay Medical Center in Rockport, and three at Mid Coast Mental Health Center had their positions eliminated, according to a news release from Pen Bay Healthcare.

The types of jobs eliminated were not immediately available from Pen Bay.

All of the organizations within Pen Bay are enacting cost-cutting measures including the elimination of some vacant positions, reductions or eliminations of outside consultants and contractors and delays of most building projects.

The cuts were done “in order to continue to move Pen Bay Healthcare and its family of

organizations in a positive direction and respond to continued low patient volumes and impending MaineCare reductions,” the news release stated.

In December, Pen Bay Healthcare then-CEO Roy Hitchings Jr. said that 17 percent of the hospital’s $87 million budget comes from MaineCare, the federal-state Medicaid program in Maine that helps pay for the health care of needy, disabled and low-income residents. Hitchings estimated in December that the changes proposed by Maine Gov. Paul LePage would cut revenues to the hospital by $5 million.

The Legislature is considering its own package of MaineCare cuts.

Pen Bay Medical Center also provides about $7 million annually in free care or care that goes unpaid.

Pen Bay Healthcare employs about 1,600 people including 100 physicians.

Pen Bay Healthcare consists of Pen Bay Medical Center, Kno-Wal-Lin home health care and hospice, the Knox Center for Long-Term Care in Rockland, the Quarry Hill retirement village in Camden and the majority of physician offices in the midcoast.

Pen Bay Healthcare said its human resources department is working with the eight employees whose jobs were cut to find other positions within the organization or elsewhere.

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