​Maine’s health care system is at a breaking point. From our hospitals to our community health centers, providers are facing unprecedented financial challenges that threaten the well-being of our residents.

The recent announcement of Inland Hospital’s closure in Waterville by Northern Light Health, driven by annual losses at Northern Light exceeding $100 million, is a stark indicator of the crisis at hand. The Center for Health Care Quality and Payment Reform warns that 11 of our hospitals are at risk of closure, with five in immediate jeopardy.​

A dire shortage of health care workers, an aging population, insufficient reimbursements — particularly from government payers — and uncertain federal and state funding have undermined our hospitals and other safety net providers, including 20 community health centers serving over 200,000 Mainers annually in rural and underserved areas.

Amid these challenges, the federal 340B drug pricing program has been a vital lifeline. Established by Congress to help safety net hospitals and health centers stretch scarce resources, it allows qualified providers to purchase medications at discounted rates and reinvest the savings into patient care. These funds support essential services such as comprehensive diabetes programs, cancer treatment and prevention and substance use disorder treatment. For instance, in FY24, Greater Portland Health used 340B savings to enhance patient access to medications, dental and mental health services.​

However, pharmaceutical companies have launched misleading campaigns against 340B, falsely claiming that hospitals misuse the savings to bolster profits. In reality, all of Maine’s acute-care hospitals are not-for-profit and are struggling financially, with about half reporting losses in the past year. These drug manufacturers are not only lobbying against the program but are also exploiting loopholes to restrict access to discounted drugs, directly affecting health care providers in Maine. Consequently, community health centers are facing significant financial hits, and participating hospitals have seen 340B savings diminish by 20% in recent years.​

It’s crucial to understand that the 340B program does not cost Maine taxpayers anything. If the program is eliminated or weakened, large out-of-state pharmaceutical companies will benefit at the expense of health care access across Maine.​

PhRMA, the drug industry’s lobbying arm, has been recycling national talking points that do not reflect Maine’s reality. Our health care providers are struggling to survive, and the 340B program is critical in supporting needed services, particularly in rural communities.​

Maine lawmakers have a clear path to protect this essential program. LD 1018, modeled after laws in Arkansas and Louisiana that have withstood legal challenges, aims to close the loopholes exploited by drug manufacturers. By passing this legislation, we can safeguard an important source of funding for a wide range of health care services across Maine — from dental care to cancer patient navigation to care for uninsured patients.​

Allowing the 340B program to be undermined will not save money for Mainers. Without state-level protection, providers will be forced to seek alternative revenue sources to maintain services or, worse, discontinue them altogether. This legislation is not only about ensuring the sustainability of our safety net providers but also about preserving access to care for those who need it most.​

We urge Maine’s legislators to act decisively. Support LD 1018 to protect the 340B program and, in doing so, contribute to the health and well-being of all Mainers.