Northern Light cuts workforce by 3%, closes Bangor clinic

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FILE PHOTO / COURTESY NORTHERN LIGHT HEALTH About two-thirds of the 308 positions affected are made up of open positions that will not be filled.

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By Laurie Schreiber

Northern Light Health reduced its workforce by approximately 3%, with more than two-thirds of the reduction made up of attrition, including retirements.

Reductions included roles throughout the organization at all levels, including senior leadership, according to Wednesday’s news release. Affected roles were primarily in non-clinical areas, but also included some patient-care roles.

About two-thirds of the 308 positions affected are open positions that will not be filled, a spokesperson told Mainebiz.

The cuts were effective immediately.

“We made every effort to limit the number of reductions, including evaluating vacancies left by retirements and other departures,” the spokesperson said.

Affected employees received severance packages, career guidance, counseling and other support. Those affected will also be eligible to apply for other open roles within Northern Light Health.

“We have been very successful in the past in helping displaced employees find other suitable work within Northern Light Health, and we expect that to also be the case in this situation,” said Paul Bolin, executive vice president and chief people and administrative officer with Maine’s second-largest health care system, headquartered in Brewer.

He added, “We have been transparent about the challenges we are facing around rising costs, low reimbursements and denials from payers, and more. It is imperative we work differently to ensure our ability to sustain our mission of caring for years to come.”

‘Perfect storm’

For the past year, Northern Light Health leaders have worked with staff and industry experts to determine the best path forward in the rapidly evolving health care industry, according to the release.

“Hospitals and health care providers across Maine are facing a perfect storm, and these challenges are especially acute in rural areas, where small hospitals and clinics struggle to remain viable and meet the needs of our aging, remote populations,” said Dr. Jay Reynolds, a senior vice president with Northern Light Health and president of Northern Light AR Gould Hospital and Northern Light Medical Group.

Bangor clinic closed

The system also announced it closed a walk-in clinic in Bangor, also effective on Wednesday.

Instead, it’s adding providers to primary care locations, which aims to increase access for same- and next-day appointments, but will only be available to established patients by appointment. The service will handle non-emergent care such as cold symptoms, urinary tract infections, earaches, fevers, sprains and strains, minor cuts, allergies, skin irritations and migraines.

The changes come amid a trend of steepening financial losses and federal Medicaid funding cuts. The system recently hired Guy Hudson as its next president and CEO, effective mid-October, citing a record of leading financial turnarounds in hospital systems.

In recent weeks, Northern Light ended contract negotiations with Anthem Blue Cross Blue Shield, citing factors such as delays in claims processing and a high volume of denials. The two parties have since said they might sit down with a third-party mediator to resolve differences.

In May, Northern Light closed its Northern Light Inland Hospital and associated services and clinics in Waterville.

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