Midcoast hospitals propose merger

By JOSIE HUANG, Portland Press Herald Writer

Copyright © 2006 Blethen Maine Newspapers Inc.

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	HOSPITAL TALKS PUBLIC FORUMS: on the proposed hospital consolidation will be held: AUG. 23: The Inn at Andrews Village, Boothbay Harbor, 7:30 p.m. SEPT. 8: Skidompha Public Library in Damariscotta, 9:30 a.m. To top of story

Lincoln County's two hospitals want to consolidate services and build a larger hospital somewhere along Route 1.

St. Andrews Hospital and Healthcare Center in Boothbay Harbor and Miles Health Care in Damariscotta say a new and improved hospital would promote efficiency and better care, and help attract doctors.

"We want to make sure there is health care in Lincoln County into the future, and we feel this is the right direction we should take today," said Peggy Pinkham, president and chief executive officer of St. Andrews.

Pinkham said the plan must stand the test of a feasibility study and, if it does, win approval from the state.

The state has more tightly restricted the number of million-dollar hospital projects in recent years. But Maine's top health policy official said projects that reduce costs and increase efficiency are a high priority to the state.

"We're really encouraged by this," said Trish Riley, director of Maine's health policy office. "I think this kind of collaboration brings their strengths together and talks about new ways to deliver services."

The state health plan does not allow for new hospitals, but Riley said this situation is different because the hospital would be the product of two existing ones.

Collaboration between the two hospitals is facilitated by the fact that both are owned by the MaineHealth hospital system, which also owns Maine Medical Center in Portland.

Financial records and other proprietary information are more easily shared than they can be between other hospitals.

Growing pressure on hospitals - from lower insurance reimbursement rates to difficulty recruiting and keeping employees - led the two organizations to start discussing money-saving opportunities several years ago.

The two hospitals already share financial services and medical record-keeping. A year ago, they hired a consultant from Mitretek Consulting of Massachusetts to discuss the possibility of building a new hospital.

The vision that emerged: A hospital that can offer more specialty services, newer technology and a capacity in the range of 60 to 80 beds. Andrews now has 25 licensed beds; Miles has 38.

Scott Shott, spokesman for Miles, added that a larger hospital would be more appealing to doctors because they would not have to be on-call as often.

"People don't want to be on call every other day. People burn out and move to more urban hospitals," Shott said.

Shott noted that the plan is in the very early stages. A feasibility study is scheduled to start in October and would take six to eight months. Construction would take at least five to seven years.

But Shott said the hospitals wanted to be upfront with the community and stem any rumors. For example, nobody would lose jobs because of the consolidation, he said.

The retirement homes run by each hospital would stay intact, Pinkham said. It's unclear what would happen to the current campuses, though Pinkham said some health care services would still be provided at those locations.

Staff Writer Josie Huang can be contacted at 791-6364 or at: