Message from the President
This past fiscal year, Franklin Memorial Hospital experienced challenges that include a negative financial position never witnessed before. Significant and emerging key financial challenges affecting our organization include federal and state budget cuts; decreases in payment for services from all payers; volume decreases in essentially all service lines; and significant increases in charity care and bad debt.
However, we are not alone. The tough economic climate has contributed to financial struggles at most hospitals in Maine, and many are responding by downsizing, joining bigger systems, and looking for new business models.
There is no single factor that has caused us to arrive at this juncture. As you know, the health care industry is in a state of great change, and it is more complex than it has ever been. As a result, the costs and challenges of running a hospital are greater than ever. Hospitals and health systems nationwide are looking for the same kind of solutions as we are. I assure you, this is not something we could have avoided.
We have made numerous organizational changes this past fiscal year to reengineer and right size the organization to the new realities of lower reimbursement, lower volume, consumer-driven health care, and value-based purchasing. Among the changes are: reductions in our compensation and benefit plans; discontinuation of ear, nose and throat services; transitioning child psychiatry services to a telemedicine model; consolidating Wilton Family Practice into existing Farmington and Livermore Falls medical practices; reduction of our workforce through attrition and layoffs; and reduced capital expenditures.
Moving forward in order to position for the future, the Franklin Community Health Network/Franklin Memorial Hospital board will examine methodically and thoroughly the following possible options:
- Mix of programs and services provided to meet community needs;
- Collaborative relationships with other health care providers; and
- Establishing additional partnerships with other health care organizations.
Rebecca Arsenault, Franklin Community Health Network President & Chief Executive Officer