One of Maine’s largest health care providers has announced that it will be taking steps to reduce costs as it faces millions of dollars in losses, including reductions in personnel.
Northern Light Health said Tuesday that it will be pursuing staffing cuts and leaving some positions unfilled in response to their current financial strain.
According to Northern Light Health’s executive vice president Paul Bolin, the health care system lost $150 million just last year.
Bolin told the Bangor Daily News that decisions regarding potential cuts will be finalized in the next six to eight weeks.
At the end of 2024, Northern Light carried $617 million worth of debt, up significantly from $443 million at the end of 2023.
“Although our expenses are outweighing our revenue in fiscal year 2025, we don’t have any immediate concern about being able to meet our debt obligations at all,” Bolin said.
“We know that today we need to change in order to have a sustainable future for ourselves to provide care to our communities, and so we’re absolutely committed to doing that,” said Bolin.
Staff reductions have already been made within the system as positions were left unfilled when people exited from their jobs. Similar strategies will continue to be pursued in various areas of the company, including among executives, he said.
According to Bolin, Northern Light intends to spend the greatest share of its budget on patient care, necessitating a reduction in leadership positions.
[RELATED: Northern Light Inland Hospital in Waterville to Close]
Although Northern Light already closed its Waterville hospital in June, Bolin has said that no other hospitals will be closed as a result of these cost cutting efforts.
It was, however, explained that each location will be evaluated to see if there is an overlap in services provided with nearby facilities, as well as to ensure that the patient services offered there are being utilized.
“If there’s a greater need for obstetrics, women’s health, pediatrics in one part of the state versus geriatric care or other primary care or other chronic health management increasing at a different pace than others, we need to make sure we are offering services where they are needed in a way that is sustainable,” Bolin told WGME. “So, that may mean we need to identify where we need to obtain or retract programs.”
An official statement from president and CEO of Northern Light Tim Dentry echoed many of these same sentiments.
“Our focus is on improving the health of the communities we serve and safeguarding access to healthcare,” the statement said. “The strategies we employ will likely include evaluating our workforce and leadership structure and maximizing revenue opportunities to strengthen our future.”
“While we do not have all of the answers today, we are committed to keeping our employees, patients, and communities up to date throughout this process,” he continued. “We know that change will be difficult, but it’s what we must do to strengthen our ability to care for our communities for generations to come.”
It remains to be seen how these efforts ultimately impact Northern Light’s offerings and accessibility throughout the state.
