ELLSWORTH, Maine — Maine Coast Memorial Hospital has reached an agreement to join Eastern Maine Healthcare Systems, the organizations announced Thursday.
Wrapped up six months after Maine Coast and EMHS announced formal negotiations, the deal would integrate the 64-bed hospital and its affiliated clinics and outpatient services into the Brewer-based health care system. The move would mark the end of Maine Coast’s nearly 60-year history as an independent hospital.
The agreement must win approval of state and federal regulators before becoming final, a process expected to take at least six months, according to a joint statement released Thursday by Maine Coast and EMHS. Terms of the deal were not disclosed.
The Ellsworth hospital, which opened in 1956, would become the ninth hospital in the EMHS network, which also includes nearby Blue Hill Memorial Hospital.
“While we will see a lot of exciting changes, many areas will stay the same,” Charlie Therrien, CEO of Maine Coast, said in the statement. “For example, our local board will continue to govern the hospital, and donations intended for Maine Coast will stay with Maine Coast. … An affiliation with EMHS will provide support and additional services that we need in order to grow and navigate the rapidly changing health care environment.”
Finances were one factor in the hospital’s decision to explore joining EMHS, Patricia Patterson King, a spokeswoman for Maine Coast, said in August. The hospital posted an operating loss of nearly $5 million in 2014.
Costly health care infrastructure, including electronic health records, has become increasingly difficult for small, independent hospitals to afford and maintain, Patterson King said at the time.
Maine Coast anticipates no staffing changes as a result of the deal, she said Thursday.
The agreement would step up an existing relationship between EMHS and Maine Coast, which shares oncology staff with Eastern Maine Medical Center, the system’s flagship hospital in Bangor. The Ellsworth hospital also participates in EMHS’ “accountable care organization,” a health care model outlined under the Affordable Care Act that rewards hospitals financially for keeping patients healthy at less cost.
“Our organizations are a perfect fit to advance the EMHS model of delivering high-quality services close to home,” M. Michelle Hood, president and CEO of EMHS, said in the statement. “Bringing Maine Coast, Blue Hill Memorial Hospital and EMHS together would enable us to design a comprehensive, long-term plan for health care in Hancock and Washington counties.”
As a member of EMHS, the Ellsworth hospital would increase collaboration with Blue Hill Memorial, an EMHS spokeswoman said in August. Already, mothers who see midwives and caregivers at Blue Hill deliver their babies at Maine Coast.