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March 12, 2013

Democrats counter hospital payback plan

In a battle over how to reimburse Maine's hospitals, renegotiate the state's lucrative wholesale liquor contract and avoid deepening gridlock in Augusta, Democrats on Monday made a late counter-move to a hospital payback proposal that Gov. Paul LePage has made his top priority.

MPBN reported that Democrats unveiled an amended liquor plan 30 minutes before the start of testimony on competing bills from Sen. Seth Goodall and LePage. Goodall's amended plan would tie renegotiation of the liquor contract to hospital payment, as LePage's plan does, and additionally would require the state to accept federal funds to expand Medicaid under the Affordable Care Act. In its first iteration, Goodall's liquor contract plan did not include repaying $184 million in debt to Maine's hospitals.

The two proposals now differ on how they would pay back the state's hospitals: LePage's plan would pay hospitals through a revenue bond; Goodall's plan would require the winning bidder to pay for the $184 million in state debt to hospitals up front.

Potential bidder Ford Reiche, head of Dirigo Spirit, argued in February that requiring a steep up-front payment would limit the potential bidders for the liquor wholesale contract.

The Bangor Daily News reported Monday that LePage said his plan will boost employment in the state. If approved, LePage said hospitals could have their payments within 45 days and that he would, separately, approve $105 million in voter-approved bonds, largely for transportation projects, and another $100 million bond for a new prison in Windham.

Until a hospital payback deal is passed, LePage said he will veto all bills the Legislature passes along to his desk.

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