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Robert Clark, Rebecca Whitmore, Rosalind Gilman, William Wood, Lori Varney, Vanessa Madore, Evelyn Silver, Kelley Strout, Cheryl Coffin, Jaclyn Silk, Lucie Estabrook, Jason Stutheit, Jims Jean Jacques, and Joan Pellegrini are trustees for St. Joseph Healthcare.
The editorial board for the Bangor Daily News recently endorsed amended legislation that would slow the growth of reimbursements to Maine hospitals from commercial health insurance companies. We are trustees of St. Joseph Healthcare, and, while we agree that healthcare is too expensive in Maine, we believe the approach recommended by the editorial board moves us in the wrong direction and risks further destabilizing an already fragile system.
Maine hospitals are not operating from a position of financial strength. They are operating on the edge. Among hospitals with more than 25 beds, Maine ranks 46th nationally in operating margin. On average, hospitals in our state lose money delivering care.
At the same time, hospital infrastructure across Maine is aging. The state again ranks 46th nationally in the age of its healthcare facilities. Deferred maintenance is no longer a future concern — it is a present reality.
We agree healthcare costs are too high, here in Maine and across the United States. But hospitals are not the primary drivers of those costs. We do not set wages in a constrained labor market. We do not control the price of pharmaceuticals or medical equipment. We do not decide who seeks care — nor should we. By law and by mission, we treat everyone who comes through our doors. In Maine, a significant portion of that care is delivered to patients who are uninsured or covered by government programs that reimburse well below the cost of providing care.
Some of us own or manage local businesses. We understand how crippling the cost of commercial health insurance is for Maine businesses. We would like to see efforts to reduce costs, and we support open dialogue on this topic.
Real solutions will require shared responsibility. Many of the forces driving healthcare costs extend beyond Maine and will require federal action. At the state level, progress will depend on bringing hospitals, providers, payers, employers, public health leaders, and policymakers together to develop solutions. We should be focused on strengthening Maine’s healthcare system — not weakening it.
