Mayo Regional Hospital board approves merger with Northern Light
Photo / Mainebiz archives
Michelle Hood, left, president of Northern Light Health, and Marie Vienneau, executive director of Mayo Regional Hospital in Dover-Foxcroft, reported today that the board overseeing Mayo has approved a merger between the two organizations. Other steps remain before a merger takes effect.
Mayo Regional Hospital’s board approved a merger with Northern Light Health, getting it one step closer to finishing a deal that has been months in planning.
The board of the Dover-Foxcroft hospital, which approved the merger Wednesday night by a vote of 15-3, cited “Mayo’s progressively worsening financial situation and the reality that Mayo Regional Hospital needs to partner with a larger organization,” the organization said in a press release Thursday.
Northern Light’s board must also approve the deal, which would then need state review and a change in state charter that must be done by the Legislature.
“This vote is significant, but it’s certainly not the completion of our work,” said Mayo Regional Hospital Executive Director Marie Vienneau. “I’m pleased that this board voted in favor of ensuring quality care for this region.”
Mayo Regional is the primary hospital for Piscataquis County, which has a population of just under 17,000. The nearest other hospital is Northern Light Eastern Maine Medical Center in Bangor, 36 miles away on two-lane Route 15.
Rural hospitals nationwide have been under increasing pressure to remain viable — with Penobscot Valley Hospital being a recent example, filing for Chapter 11 bankruptcy protection.
“The most important thing that we can do as a hospital is ensure access to quality care for the people who live here,” said Vienneau. “While rural hospitals nationwide are seeing similar challenges, we have the opportunity to ensure quality care for this region for the foreseeable future with an organization who understands rural health care in Maine, Northern Light Health. It’s our responsibility to take that opportunity on behalf of the people counting on that care.”
Michelle Hood, president of Northern Light Health, said the vote is “a key step forward in the proposed merger of Mayo with Northern Light Health. We already partner with Mayo to deliver a variety of clinical services like obstetrics and cancer care. We look forward to exploring an even closer relationship that harnesses our collective strengths for the greater good of those who live in Piscataquis County. While our work is by no means complete, this vote enables Mayo and Northern Light Health to continue our dialogue.”
Merger expected to help finances
Because Mayo Regional Hospital is owned and operated as a Hospital Administrative District, its board is made up of members who are elected by the communities served by the hospital. Established in 1978, the district is the only one of its kind left in Maine, and is a quasi-governmental agency with taxing power. The merger would transform the district into a Maine charitable tax-exempt nonprofit corporation that would have a community-based board but would not have taxing authority. The move would relieve the towns in the district from potential liability for the indebtedness of the hospital.
“Northern Light Health has been sensitive to the unique nature of our board, and the rural health care needs of the people in this region,” said Vienneau. “If this hospital becomes part of the Northern Light Health system, people in this region will see continued quality care, and could feel confident in the future of Mayo Regional Hospital.”
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