On January 15, Governor Paul LePage announced his plan to pay Maine hospitals Medicaid debt dating back to 2009. 

Under the Governor’s proposal the state will pay hospitals $186 million in unpaid Mainecare bills, which will trigger another $298 million in matching federal Medicaid dollars. 

The state’s share will be funded by borrowing against future revenues anticipated from state liquor operations. 

Maine privatized liquor operations in 2004 and under LePage’s plan, would reacquire liquor operations when the 10-year private contract expires in 2014. 

Lincoln County Healthcare CEO Jim Donovan was among the many in the state’s healthcare community pleased with LePage’s announcement.

“This is a big day and one long in coming. We appreciate the Governor’s commitment to paying the debt,” Donovan said.

Donovan said the money is not a windfall, but an anticipated repayment of money owed for a number of years.

“As we have expected payment at some point, we have thought and planned with it in mind, so today’s developments do not change our operations in any way,” he said.

Miles Memorial Hospital is owed more than $3 million in unpaid Medicaid bills but St. Andrews Hospital actually owes the state $200,000.

“St. Andrews was overpaid in 2012 and underpaid from 2009-2011. The $200K is the net due back to the state,” Donovan said.

Sue Mello can be reached at 207-844-4629 or sumello@boothbayregister.com.