Penobscot Community Health Care faces layoffs and funding crisis

Penobscot Community Health Care (PCHC), Maine’s largest federally qualified health center, is facing a $3 million funding shortfall that has led to the layoff of 16 employees and the closure of its Adult Wellness Center. The nonprofit, which serves approximately 50,000 patients across Bangor, Brewer, Old Town, Belfast, and Jackman, is seeking immediate financial assistance to avoid further service disruptions or bankruptcy.

Efforts to stabilize the organization's finances have been complicated by the city of Bangor, which has exercised its right of first refusal to purchase a property at 103 Maine Ave. PCHC had planned to sell the administrative building to a local medical practice for approximately $1.375 million to address its immediate operational needs. However, the city intends to acquire the building for its own public health department, a move that may prevent PCHC from accessing the funds within the required 30 to 60-day window.

State lawmakers have requested up to $6 million in emergency funding from Governor Janet Mills to prevent further clinic closures. The financial crisis is also attributed to a reimbursement dispute that denied community clinics nearly $6.5 million in expected cost-of-living adjustments.