Maine hospital merger secures state approval

MaineHealth has cleared the final hurdle in its plans to acquire York Hospital.

The health system announced this week that Maine state regulators have approved the planned acquisition of York Hospital. The transaction is expected to be completed on Oct. 1.

MaineHealth and York Hospital first announced plans to come together last fall. York Hospital officials said at the time that the organization could no longer survive on its own, citing mounting financial difficulties.

Dr. Andy Mueller, chief executive officer of MaineHealth, said he was proud to welcome the hospital into the system.

“York Hospital is a vital part of the healthcare landscape in southern Maine,” Mueller said in a statement. “With this approval, we can begin the important work of bringing our teams together—listening, learning and building on the strengths that already exist—to better serve patients and communities.”

York Hospital is licensed for 79 beds and has served the town of York, a community of about 13,000 residents in southern Maine, for more than a century. York Hospital also operates 10 other healthcare sites serving southern Maine and part of neighboring New Hampshire.

Dr. Patrick Taylor, chief executive officer of York Hospital, said joining MaineHealth will protect the hospital’s long-term viability.

“For generations, York Hospital has been a trusted community institution defined by compassionate, patient-centered care,” said Dr. Patrick Taylor, chief executive officer of York Hospital. “This approval allows us to move forward with a partner who shares our commitment to ensuring patients in our region continue to receive excellent care close to home.”

The Maine Department of Health & Human Services approved a certificate of need for the merger in July.

As a condition of the approval, MaineHealth can’t close any York Hospital facilities or relocate any services for three years without first notifying the state health department and engaging state officials. MaineHealth would also be required to provide plans for maintaining services in southern York County.

York Hospital had been struggling financially, and its difficulties were exacerbated by being unable to participate in federal programs to help safety net hospitals. York Hospital said it didn’t qualify for the government’s Critical Access Hospital designation or 340B drug pricing.

“As efficient and agile as we are, we can no longer navigate the challenging health care landscape on our own. We are taking this step out of responsibility to our community,” York Hospital said on its website.

By joining MaineHealth, York Hospital will be able to access more clinical support and other resources, officials said. Officials said MaineHealth would maintain inpatient services at York Hospital and bolster primary care and specialty care services.

York Hospital will join MaineHealth’s Southern Region. MaineHealth said the system will work with York Hospital leaders to engineer a smooth transition, and stressed that there would be dialogue with patients, employees and community members.

MaineHealth operates Maine Medical Center, its flagship hospital with a Level 1 trauma center, and nine other hospitals, along with a host of other healthcare locations serving patients in Maine and New Hampshire.

Hospitals across the state of Maine have been struggling financially, according to a March 2025 report by PYA, commissioned by the Maine Hospital Association. Maine’s hospitals are among the oldest in the nation, according to the report.

“The study finds the current situation unsustainable—hospitals are grappling with crippling costs, plummeting revenues, and aging infrastructure. Many are being forced to cut services, delay critical investments, and stretch resources beyond safe limits,” the report stated.