Executives from Northern Maine Medical Center in Fort Kent will take over the management of Houlton Regional Hospital under a new one-year agreement announced Thursday, representing a major new partnership between the two previously unaffiliated Aroostook County hospitals.
Under the agreement, NMMC President and CEO Jeff Zewe and Chief Financial Officer Aaron Teachout will immediately take on the same roles at Houlton Regional Hospital, according to a Thursday evening release.
The hospitals will continue to operate as independent entities under the direction of their respective boards of trustees.
“In this critical time for rural hospitals, this a great opportunity to align services for the future of
both hospitals and the care they provide to their communities,” Zewe said. “The outlook for rural hospitals as stand-alone facilities is precarious.”
The new management agreement comes as many hospitals across Maine have struggled to maintain their services amid growing costs and shrinking demand for some types of services, which in some cases has led to consolidation or termination of those offerings.
In April, Gina Brown, Houlton Regional Hospital’s chief operating officer, announced that its labor, delivery, recovery and postpartum department would close on May 2. The release on Thursday did not say if Brown would remain at HRH.
The new management agreement is intended to increase patient access, enhance quality outcomes and improve the long-term financial stability of both hospitals, with a more “formal affiliation” as its goal, the release said. Officials did not spell out what that formal affiliation could eventually entail.
Each hospital has 25 acute care beds and is classified as critical access, meaning it can claim some higher federal reimbursement rates. Combined, the two hospitals serve almost half of Aroostook County’s 70,000 people, according to hospital officials.
“This agreement will make us stronger together,” said Lynette McLaughlin, president of the HRH board of trustees in the release. “The synergies through this management agreement are truly exciting.”
Zewe said that if the hospitals continue to stand alone, survival prospects are limited, but together the potential for growth is exciting.
“Through our joint efforts, we can enhance physician recruitment, improve access and quality for both hospitals,” he said. “Sharing expertise and services can only mean good things for our communities.”
