York (Maine) Hospital is a step closer to joining Portland-based MaineHealth after receiving certificate-of-need approval from the state’s department of health and human services.
The independent hospital signed a letter of intent in October to join MaineHealth, citing an increasingly challenging healthcare landscape, including rising labor and supply costs, as well as increasing payer denials. The 79-bed hospital also does not qualify for federal safety-net programs such as critical access hospital designation and the 340B drug pricing program.
The Maine Department of Health and Human Services approved the transaction May 14, subject to several conditions. For three years after the merger, MaineHealth cannot eliminate healthcare services or make significant changes to service access without the department’s prior written approval. The health system must also submit York Hospital’s audited financial statements to the department annually during that period.
In October, the hospital and health system said the proposed merger is a multistep process that is expected to take more than a year to complete. The deal still needs approval from the Maine attorney general’s office, and MaineHealth is also awaiting further regulatory review from the state, the Portsmouth Herald reported May 29.
York Hospital would become the ninth hospital in MaineHealth’s system if the transaction is completed.
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