Maine hospitals explore possible merger

York Hospital in Maine has been facing mounting financial pressures, and the hospital says it can no longer go it alone.

The hospital is looking to join MaineHealth, which operates eight hospitals throughout the state. The leaders of the two organizations say they are exploring a merger.

Dr. Patrick Taylor, chief executive officer of York Hospital, said joining MaineHealth is the best way to continue serving the community.

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

The system has partnered with MaineHealth recently to provide health care services.

“We have turned to MaineHealth multiple times over the past year to assist with clinical needs and support services. Now, we are looking to join the MaineHealth family to ensure that our community continues to have local access to top-quality health care close to home, for generations to come,” Taylor said.

MaineHealth and York Hospital have signed a letter of intent for a merger, but regulators must still sign off on the deal. Hospital officials say the process could take ore than a year.

Maine state officials must approve an application for a certificate of need, and Maine’s attorney general must also review the transaction before the deal is approved.

York Hospital has been serving the town of York for more than a century. York, a community of about 13,000 residents, sits in southern Maine about 42 miles from Portland.

The hospital is licensed for 79 beds. In addition to the main hospital campus, the organization also operates 10 other healthcare sites in southern Maine and neighboring New Hampshire.

Many hospitals are struggling financially nationwide with higher costs for supplies and labor, but York Hospital says it is facing some other headwinds beyond those of its peers.

York Hospital notes that it is not eligible for some federal programs designed to help hospitals in vulnerable communities.

The hospital doesn’t qualify for the government’s designation as a Critical Access Hospital. It also isn’t eligible for the federal 340B drug pricing program, which allows hospitals serving a high percentage of patients with lower incomes to buy outpatient drugs at lower costs.

Dr. Andrew Mueller, chief executive officer of MaineHealth, touted the merits of adding York Hospital to the organization and building on their partnership.

“York Hospital is a vital part of our overall health care system in Maine, as well as an important institution in the community it serves,” Mueller said in a statement. “With York Hospital as a part of the MaineHealth family, we will be able to continue to provide the people of southern York County with outstanding care close to home, bringing us another step closer to our MaineHealth vision of working together so our communities are the healthiest in America.”

Many hospitals across the state of Maine have been struggling financially, according to a March 2025 report by PYA, a tax and accounting firm that consults healthcare organizations. The Maine Hospital Association commissioned 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.

Maine’s hospital facilities are among the oldest in the nation, and they are among the most heavily in debt, according to the report.

More hospital mergers and acquisitions have been announced in recent months, and industry analysts expect to see more deals as hospitals face greater financial difficulties, including projected reductions in Medicaid programs.

Other deals have been announced in New England recently. Dartmouth Health announced plans in September to acquire Littleton Regional Healthcare, a 25-bed critical access hospital in western New Hampshire.

In January, the Prime Healthcare Foundation, based in California, reached an agreement to acquire Central Maine Healthcare, which operates three hospitals: Central Maine Medical Center in Lewiston, Bridgton Hospital and Rumford Hospital. The systems hope to complete the deal by the end of the year.

• Read more: Hartford HealthCare moves closer to buying two Connecticut hospitals