Hospital takes steps to improve budget situation
By Scott Mitchell Johnson
Staff Writer
PRESQUE ISLE — The Aroostook Medical Center is working diligently and collaboratively to close a $1 million budget shortfall.
According to Jason Parent, director of advancement, the hospital is taking “proactive cost-saving measures” and are “engaged as an organization in a number of revenue enhancement initiatives.”
“The recent addition of new physicians and new procedures are expected to increase revenue,” said Parent. “In addition, the introduction of new technology and exploration of alternative fuel sources to heat TAMC’s A.R. Gould Memorial Hospital campus are expected to produce future cost savings.”
The cash flow has been impacted by the $10.4 million in Medicaid debt owed to TAMC by the state of Maine.
“TAMC is carefully watching expenses, most especially capital and discretionary spending,” Parent said. “TAMC is also being conservative on hiring for the coming months through the end of the current fiscal year, which ends Sept. 30. Non-union employees and management who have accumulated adequate unused vacation time have been directed to utilize their paid vacation days accrued in 2012 before the end of the year.”
The hospital employs 1,023 people at facilities throughout central Aroostook County.
“Only management and non-unionized employees are impacted,” said Parent. “Altogether, roughly 50 percent of TAMC employees are affected.”
TAMC managers were notified of the cost-saving measures May 18. Employees were notified by their managers in the days that followed. The measures, Parent said, became effective the week of May 21 and will continue through Sept. 30.
“We are working diligently to address this both with the addition of new physicians and new procedures and appropriate belt-tightening measures,” said TAMC President and Chief Executive Officer Sylvia Getman. “I am very proud of the employees of TAMC and their willingness to work with us to address this temporary gap.”
Parent agreed.
“The cost-saving efforts are temporary measures. As an organization we are optimistic this situation will be mitigated,” he said. “The goal is to get the budget on target and to end the current fiscal year in the black.”
