Northern Light-Mayo merger progresses, while Blue Hill Hospital scales back
File Photo / Maureen Milliken
Mayo Regional Hospital, shown here last winter, may become part of Northern Light Health, the state's second-largest health care system.
The planned acquisition of Mayo Regional Hospital in Dover-Foxcroft by Northern Light Health took a step forward late Friday when Gov. Janet Mills signed into law a revision to the hospital’s state charter, needed before the deal could advance.
The legislation, LD 1708, transfers Mayo’s ownership from a quasi-public agency established in 1973 to a newly created nonprofit corporation owned by Northern Light, the parent organization of nine hospitals including Eastern Maine Medical Center in Bangor and Mercy Hospital in Portland.
The Legislature approved the charter change on June 11. In April, 12 of the 13 communities served by the hospital supported the merger in a series of advisory votes.
Mills’ signature paves the way for Mayo and Northern Light to apply for a certificate of need from the Maine Department of Health and Human Services, whose approval is necessary for changes of ownership. The 25-bed hospital and its potential new parent filed a letter of intent with DHHS on June 14 indicating they would soon be applying.
Because of the size of the transaction, no federal antitrust reviews are expected to be necessary, according to the letter. The acquisition would require final approvals from both the Mayo and Northern Light boards.
The letter comes as Northern Light scales back operations at one of its current member hospitals.
Northern Light Blue Hill Hospital, in Blue Hill, will discontinue surgical services “in the next few weeks,” spokeswoman Suzanne Spruce told Mainebiz today. The 25-bed critical access hospital currently performs a range of endoscopic, outpatient and inpatient surgeries.
But with declining patient volume there, Spruce said, Northern Light will soon be performing these procedures at its Maine Coast Hospital, in Ellsworth.
“We made the decision to consolidate surgeries at Maine Coast after carefully considering access for patients, quality of service, sustainability of the program, and finances,” she said.
Four surgeons who work at both hospitals will remain based at Maine Coast, and 13 medical staff will be redeployed there or in other Northern Light facilities.
Meanwhile, another hospital acquisition is making progress of its own.
On June 17, MaineHealth, the state's largest health care system, announced board approval to acquire Mid Coast-Parkview Health, which operates 93-bed Mid Coast Hospital in Brunswick. Last Wednesday, in a letter to DHHS, MaineHealth said a certificate of need for the transaction would probably be filed in August.
MaineHealth and Mid Coast have targeted Jan. 1, 2020, for the completion of the merger, according to the letter.
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