AUGUSTA, Maine — The Department of Health and Human Services and the Maine Hospital Association announced this week they agreed on a way to invest $90 million in MaineCare reimbursements.
The investment is a combination of increasing the hospital tax rate by 1%, which will kick in more federal matching funds. DHHS Commissioner Jeanne Lambrew said it’s a move that can benefit all Maine patients.
"When a hospital in rural Maine or urban Maine has better support from MaineCare, they can, in turn, improve their quality programs, hire more staff, ensure that their quality programs are top-notch," Lambrew said.
According to Maine Hospital Association President Steven Michaud, Maine's hospitals are taxed about $120 million annually. This added investment, he said, will help a continued recovery from pandemic hits to staffing.
"Coming out of the pandemic, hospitals are still struggling mightily — both financially as well as with their staffing," Michaud said. "We're out of the heat of the pandemic, but we're not out of the problems related to it."
This is a proposal for the upcoming supplemental budget and still must pass the legislature. It's expected to take effect in the next fiscal year.