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For Immediate Release

Date: 02/09/11

Rep. Ken Fredette: Sebasticook Valley Hospital to Receive $3.52 Million

AUGUSTA - State Rep. Ken Fredette said today that passage of the supplemental budget means Sebasticook Valley Hospital will receive approximately $3.52 million to cover services for MaineCare patients from 2007 through 2009.

The $151 million supplemental spending bill passed the Legislature on Feb. 8, with all Republicans in the House and Senate voting for it and only a few Democrats voting in opposition.

"The bill contained $70 million in state funds to pay for hospitals, and that triggered federal matching funds to bring the total to $248 million," said Rep. Fredette (R-Newport), who serves on the budget-writing Committee on Appropriations and Financial Affairs. "I'm grateful for all the help we received from legislative committees that enabled us to get this bill passed quickly, in time to qualify for an enhanced federal match."

Sebasticook Valley Hospital is projected to receive $698,000 to cover MaineCare services from 2007, $2.11 million for 2008, and $1.1 million for 2009. The total was offset by a $391,000 credit from 2006. The amount pegged for Sebasticook could change somewhat due to audits and appeals from other hospitals who may dispute their settlements.

Across the state, 39 hospitals will receive MaineCare payments as a result of the supplemental budget. The MaineCare enrollment stands at about 300,000, an all-time high.

"Governor LePage campaigned on a pledge to pay the hospitals, and he and the Legislature have delivered," said Rep. Fredette. "It is very important that hospitals be able to pay their own bills, including payroll, because they obviously are critical assets in our communities."

Rep. Fredette said the new package balances the state's books through June 30, 2011, the end of the biennial budget cycle. "The supplemental budget includes $4.5 million in tax relief by providing conformity with federal tax law," he said. "All in all, the Legislature did an outstanding bipartisan job in dealing with the supplemental bill and providing excellent response to the needs of the Appropriations Committee. It sets a strong, positive tone for the new Legislature." ###

Jay Finegan
Maine House Republicans
Tel: (207) 287-1445