Maine system eliminates 308 positions, including senior leadership roles

Brewer, Maine-based Northern Light Health has trimmed its workforce by 3% — a reduction of 308 positions — amid ongoing financial challenges and operational restructuring, a spokesperson for the health system confirmed to Becker’s. 

About 100 of the affected employees were laid off Sept. 3, while the rest of the cuts stem from open positions that will not be backfilled, according to Paul Bolin, Northern Light’s executive vice president and chief people and administrative officer. The health system employs approximately 10,000 people across the state.

The cuts span all levels of the health system, including senior leadership and clinical care. Two executives — the senior vice president and chief strategy officer and the senior vice president of clinical operations — recently retired and will not be replaced.

“Northern Light Health is facing increased costs for supplies, pharmaceuticals, and labor combined with reduced volumes, low reimbursements, and high denials of payment for medically necessary care from payers,” Mr. Bolin said. “These factors are creating a perfect storm that requires fast and focused attention. Significant funding risks in the future from government payers, such as Medicaid are adding to this urgency.”

To compound these issues, the health system said its workforce is bigger than demand can support.

“Consolidating responsibilities and reducing positions is a necessary part of this broader effort,” Mr. Bolin said. “Leaders and teams throughout Northern Light Health have been working together to better align with healthcare industry standards that support both patient care and financial stability.”

The cuts also include the closure of Northern Light’s walk-in care clinic in Bangor, which had previously reduced its hours due to low demand, according to the Bangor Daily News. Clinical staff from that site will be redirected to support Northern Light’s primary care practices.

Affected employees will be offered severance and career support. Northern Light said it will prioritize internal candidates for its open positions and hopes to retain at least half of those laid off. 

The workforce reductions follow a difficult year for the system, which closed Waterville, Maine-based Northern Light Inland Hospital in May and reported a $156 million loss in 2024. 

Northern Light is also navigating a standoff with Anthem Blue Cross Blue Shield, the state’s largest payer, that may affect access to services for covered patients.

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