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  • Expense Reductions

    Millinocket Regional Hospital CEO, Marie Vienneau, today announced budget cuts to counter the Hospital’s $1.5 million dollar budget short fall for the year that ended June 30. Vienneau stated that the hospital will have an approximate one-half million dollar loss on operations this year, the first negative margin since the Great Northern Paper Co. Bankruptcy in 2002. 

    Like other hospitals in the State, Vienneau cited a combination of factors that they believe contribute to the losses. Declining volumes due to the economy, population decreases in the area, high deductible health plans, and reimbursement reductions from Medicare and Medicaid (known as the Mainecare program in Maine.) 

    Cost reduction efforts included reduction of hours in the Fitness and Wellness department as well as the Cardiac Rehab department. General Surgery and some hospital management positions were re-organized. Employee benefits were decreased as well. The overall FTE impact of the re-organization was 10.1 FTE’s, with a corresponding expense reduction of $550,000. Continued Financial Improvement Planning will take place, with overall expense reductions target of $1.5 million.