Poliquin’s Action Helps Save Hospital in Calais

WASHINGTON – Recently the hospital in Calais, providing critical care to senior citizens and families and the second largest employer in Washington County, was in serious danger of closing – and closing quickly – due to a decision by the Center for Medicare and Medicaid Services (CMS) in Washington, DC, which immediately threatened the hospital’s financial stability. 

CMS had determined there was a multi-year overpayment to the hospital.  The agency then requested an immediate payback of $3.5 million, which would cripple the hospital’s ability to stay open.

When his Office heard the hospital was in trouble, Congressman Bruce Poliquin took action.

Congressman Poliquin immediately reached out to the Center for Medicare and Medicaid Services requesting Calais Maine Regional Hospital be allowed to pay the 2013 and 2014 overpayment through a multi-year repayment plan, rather than in a lump sum.

In his letter to CMS, Congressman Poliquin wrote, “Calais Regional Hospital and the tens of thousands of rural Mainers whose health depends on its services should not be threatened because this overpayment was finally realized by CMS auditors, who demanded immediate repayment.

“Writing off the overpayment or allowing Calais Regional Hospital to instead return the overpayment as it has requested through a payment plan of either 36 or 60 months would allow new Interim CEO, Bert Whitaker, the time he needs to restructure the hospital’s debt and get it on firm financial footing, so it can continue to serve the community that so greatly relies upon it.”

Upon reading the letter and following up with Calais Maine Regional Hospital leadership, CMS accepted a 36 month repayment plan.

Bert Whitaker, interim CEO of Calais Regional Hospital, released the following statement:

“The Board of Directors and I appreciate very much Congressman Polquin’s assistance in securing cooperation with Medicare on a recent cash flow issue.   The Congressman’s staff were great to work with and very understanding of the significance in securing a solid financial foundation for the hospital.   Calais Regional Hospital is important to our region and ensuring CRH continues to be able to provide care is vital to not only our community members’ health, but also the health of our local economy.”

Everett Libby, Chairman of the Calais Regional Hospital’s Board of Directors, released the following statement:

“We very much appreciate Congressman Poliquin’s assistance,” said Everett Libby, Chairman of the Calais Regional Hospital’s Board of Directors. “Our hospital is very important to this region. Without Congressman Poliquin’s help, and the agreement of CMS to restructure this payment, the health care provided could have been lost.”

“I’m pleased to see CMS recognized how vital Calais Regional Hospital is to the local community and Washington County,” said Congressman Bruce Poliquin. “This multi-year repayment plan will help get Calais Regional Hospital on the right fiscal track while keeping their doors open to Mainers.” 

The following is the full text of the letter:

August 10, 2015

The Honorable Andy Slavitt
Acting Administrator
Centers for Medicare and Medicaid Services
7500 Security Boulevard
Baltimore, Maryland 21244-1850

Dear Acting Administrator Slavitt,

Please accept this letter in support of Calais (Maine) Regional Hospital’s request that it be allowed to return the $3.5 million it received in Medicare and Medicaid overpayment in 2013 and 2014 to the Centers for Medicare and Medicaid Services (CMS) through a multi-year repayment plan, rather than in one lump sum that would likely bankrupt this crucial rural health care provider.

Calais Regional Hospital is one of only two critical access hospitals in Washington County. The county is Maine’s poorest and at the epicenter of the state’s prescription drug abuse epidemic, which is the worst in the nation and recently aggravated by the arrival of cheap, deadly heroin that has led to dozens of deaths and the biggest outbreak of acute hepatitis C since the State began keeping records in the 1990s. With a service area of 55,000 people – including residents of the Passamaquoddy Pleasant Point Reservation and the Passamaquoddy Indian Township Reservation – the hospital receives 8,500 visits to its Emergency Room and delivers more than 100 babies each year. Just as the area’s physical health relies on Calais Regional Hospital, so too does its economic health, and with 250 employees, the hospital serves as Washington County’s second largest employer. Simply put, this region cannot lose this resource.

As you know, the process by which Medicare and Medicaid payments to health care organizations are calculated each year is extremely complex, and confusion and overpayment often results. The 25 hospitals in Maine’s Second District that I represent in the United States Congress look forward to improvements in that process as well as finalization of fair, reasonable rules that govern how they should return those overpayments mistakenly issued by the federal government. In the meantime, Calais Regional Hospital and the tens of thousands of rural Mainers whose health depends on its services should not be threatened because this overpayment was finally realized by CMS auditors, who demanded immediate repayment. Writing off the overpayment or allowing Calais Regional Hospital to instead return the overpayment as it has requested through a payment plan of either 36 or 60 months would allow new Interim CEO Bert Whitaker the time he needs to restructure the hospital’s debt and get it on firm financial footing so it can continue to serve the community that so greatly relies upon it.

Therefore, in accordance with all applicable laws and regulations, I respectfully request that CMS give every consideration to the hospital’s request to be allowed to return $3.5 million through a payment plan and that you please notify my District Director Samantha Warren when a decision has been made or if you need additional information.