Northern Light Health on Wednesday announced a 3% reduction in its workforce — including some senior leadership positions — the latest in a series of cutbacks at the health care system.
In all, 308 positions will be cut across Northern Light Health, the second-largest health care system in Maine after MaineHealth. Northern Light, which has more than 10,000 employees, includes Eastern Maine Medical Center in Bangor, Mercy Hospital in Portland, seven other hospitals, outpatient clinics and primary care centers, and other health care services.
Northern light will be eliminating the walk-in care clinic — similar to urgent care — at EMMC. Its primary care providers will have additional staff to help handle patients who would have used the walk-in clinic.
“Like health systems across the country, Northern Light Health is facing increased costs for supplies, pharmaceuticals and labor, combined with reduced volumes, low reimbursements and high denials of payment for medically necessary care,” said Karen Sanborn, spokesperson for Northern Light Health. “These factors are creating a perfect storm that requires fast and focused attention.”
Sanborn said about two-thirds of the positions eliminated were through attrition — not filling open positions and retirements.
The cuts are expected to save more than $30 million, said Paul Bolin, executive vice president and chief people and administrative officer at Northern Light Health, during a brief phone interview with the Press Herald on Wednesday.
“This is an important part of our recovery to become financially sustainable,” Bolin said. “We tried to make cuts that were as least disruptive to patient care as possible.”
Leadership positions that are currently vacant will not be filled, including the chief strategy officer and a senior vice president.
“This is difficult but very necessary work,” Bolin said in a statement. “It is imperative we work differently to ensure our ability to sustain our mission of caring for years to come.”
The hospital system lost $156 million last year, according to public tax filings, and this June closed Inland Hospital in Waterville.
Northern Light Health has also announced it will no longer participate in the Anthem insurance network, as negotiations over a new contract with the insurer stalled.
