Going Bankrupt: Two Maine Hospitals May Close in June

According to WGME, two Maine hospitals have indicated they may be forced to close in June if they don't receive stimulus funds.

Penobscot Valley Hospital and Calais Regional hospital have been denied access to the current PPP (Paycheck Protection Program) because it disqualifies businesses that have filed bankruptcy, as both the organizations have.

Both hospitals have filed lawsuits claiming the unfairness of the rules because they were not included in the original program last month.

Because of both state and federal guidelines, both hospitals have been losing a lot of money. Much of the income for both healthcare facilities comes from things like outpatient care and elective procedures.

As both hospitals continue to hemorrhage money, Calais Regional Hospital has decided to cut 10% of its workforce.

We will continue to follow this story and update accordingly if and when either or both of these hospitals close.