In Lincoln, King Hears Warnings of How Maine Rural Hospitals Will Suffer From Repeal of Affordable Care Act

Press Release

During a conversation convened by U.S. Senator Angus King (I-Maine) today, leadership and health providers at Penobscot Valley Hospital (PVH) in Lincoln warned that a repeal of the Affordable Care Act could result in the loss of more than $10 million over the next ten years, endangering the financial stability of the hospital, its ability to provide convenient, high-quality care to local residents, the jobs of those it employs, and its significant economic contributions to the region.

"Today's conversation was yet another stark reminder of the far-reaching consequences that a repeal of the Affordable Care Act would have on rural Maine, and it leaves me feeling deeply concerned," Senator King said. "In rural Maine, hospitals like Penobscot Valley are often the only locations where people can access live-saving care and other vital health services -- and a repeal of the Affordable Care Act would undermine their ability to provide that critical care. Furthermore, because PVH, like many rural hospitals in Maine, is one of the largest employers in the region, a repeal of the health care law would jeopardize the hospital's financial standing, likely lead to job losses, and put into motion a harmful economic ripple effect that would touch every portion of the Lincoln Lakes region.

"I want to ensure that every person in Maine, regardless of whether they live in Bangor or Augusta or Lincoln, has convenient access to quality health care. The Affordable Care Act has helped accomplish that, and rather than repeal it and risk serious harm to people and their communities, Congress should work together, in a bipartisan fashion, to make meaningful improvements to the law," Senator King said.

According to Penobscot Valley Hospital (PVH), the negative financial impact from both state and federal cuts would cost the hospital nearly $3 million over the next two years alone -- and those losses come at a time when many hospitals across the state are already operating at a loss. PVH, as a result of several factors including sequestration cuts imposed by Congress, has suffered financial losses for the past five years. Any further losses resulting from the repeal of the ACA, according to hospital officials, would likely lead to the elimination of health care services and threaten jobs.

PVH, aside from the school systems in the Lincoln Lakes Region, is the largest employer in the area, with an average of 219 employees in 2015. The hospital has an economic impact of $47 million per year through direct and indirect expenses, which is a financial bulwark in a region that has endured economic distress from the closing of Lincoln Paper and Tissue in 2015.

The message presented to Senator King by Penobscot Valley Hospital was consistent with the one he heard at Bridgton Hospital earlier this month: a repeal of the landmark health care law would leave a substantial amount of their patients without health insurance, which would have serious, and in some cases, catastrophic, financial ramifications for hospitals. If the hospitals closed, then not only would countless people in Maine go without vital health care services, but hospital employees would also be laid off, which would detrimentally affect their livelihoods and hurt the local economy.

Senator King opposes the repeal of the ACA, which would strip health care away from tens of millions of Americans, including more than 75,000 in Maine. Earlier this month, Senator King offered five amendments to legislation currently under consideration by the Senate that would preserve critical facets of the ACA. He has also cosponsored an amendment that would stop efforts to dismantle the law, and he joined with several of his centrist colleagues in urging Senate leadership to discuss improvements to the law before rushing to fast-track a repeal of it.

Senator King also took to the Senate floor to share his personal story of how having health insurance saved his life and, later on, he once again spoke from the floor to share the stories of people from across Maine who have been helped by the ACA, some in lifesaving ways.

The nonpartisan Congressional Budget Office has stated that a repeal of the Affordable Care Act would cost 32 million Americans their health insurance and force premiums in the individual market to nearly double over the next decade.

Penobscot Valley Hospital is a 25-bed critical access hospital serving people in the greater Lincoln Lakes Region providing a wide array of high-quality services including acute care, skilled care, emergency care, imaging services, laboratory services, primary care, surgical services, rehabilitation and speech therapy, and specialty care provided through partnerships with local healthcare facilities.

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