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May 23, 2014

MaineGeneral Health seeks layoffs, position cuts

MaineGeneral Health, the Augusta-based health care network, is planning to lay off 16 full-time employees and eliminate 112 unfilled positions.

The Bangor Daily News reported the cuts are part of the company’s budget proposal for next year, which takes effect in July. The layoffs, which are mostly in management, will result in a 1% reduction of the company’s workforce of 4,300 employees.

CEO Chuck Hays told the newspaper the cuts were prompted by declining revenues, which have been driven by decreasing Medicare reimbursements and the state failing to expand federal Medicaid program under the Affordable Care Act.

“We continue to remain busy, but our length of stay and acuity is up,” he told the Bangor Daily News. “And we get paid by the patient and not by how long they stay.”

The health care network’s FY 2015 budget is awaiting board approval.

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