Maine Clinics Seek $6.5M In Unpaid Funds

Seventeen community health centers in Maine have formally requested $6.5 million from the state to cover delayed cost-of-living adjustments.

The clinics, known as federally qualified health centers, originally expected these payments to arrive at the start of July. They relied on state law and two years of prior practice to build their budgets. However, the Maine Department of Health and Human Services withheld the money, citing a lack of specific legislative appropriations. This delay has forced organizations to delay hiring and equipment purchases while operating on tighter margins.

In late October, the group sent a joint letter to the health department demanding retroactive payment effective July 1, 2026. The letter stated that the adjustment is owed and necessary to maintain service levels. Without the funds, centers reported they could not fill open positions or invest in new technology.

Laurie Kane-Lewis, CEO of DFD Russell Medical Centers in Turner, Leeds, and Monmouth, said her organization has held four medical positions open this year. She attributed the vacancies to the inability to cover increased benefit costs for staff. Coleen Elias, CEO of Community Clinical Services in Lewiston, noted her center missed out on $157,000 in expected funding. She said in September that the lack of funds prevented the center from recruiting for open roles or buying new equipment.

Lindsay Hammes, a spokesperson for the department, said on Monday that the Legislature did not appropriate the necessary funding for this year. She explained that the 2026 supplemental budget only directed cost-of-living increases for certain services, excluding federally qualified health centers. This differed from the 2025 biennial budget, which funded a 1% increase across all MaineCare services. Hammes noted that total MaineCare spending on community health centers has risen by nearly 50% since early 2023.

Rep. Jack Ducharme, R-Madison, the ranking Republican on the appropriations committee, criticized the department's stance. He argued that the state is playing a word game by refusing to use the MaineCare Stabilization Fund for the adjustment. The fund, which held more than $53 million in late September, is intended to prevent service losses when general appropriations fall short. Ducharme said he has pushed the department for answers on why the COLA does not meet the fund's criteria. He noted that officials have moved tens of millions of dollars in and out of the fund since 2025 to cover cycle payments and draw on surpluses.

The department has not yet announced a new timeline for the payments. The clinics continue to operate without the expected revenue while awaiting a decision on how the state will handle the retroactive adjustment.