AUGUSTA – The state still owes hospitals millions of dollars for MaineCare services rendered years ago. Even so, a bill that would control how hospitals spend those funds on advertising received a public hearing in the Legislature on Wednesday.

Sen. John Nutting, D-Leeds, the bill’s sponsor, said he had gotten a number of e-mails from people about how far behind the state is in payments and how hospitals aren’t doing well, but then he started counting the number of advertisements in his local paper, the Sun Journal, that were purchased by hospitals.

“I’ve seen since last May, 58 color advertisements in our newspaper, advertising certain doctors that work at this particular hospital,” he said. “This is all paid for with state money.”

Nutting’s legislation calls for hospitals to deduct from state reimbursement the cost they’ve paid for advertisements.

Mary Mayhew, vice president of government affairs for the Maine Hospital Association, said MaineCare and Medicare policy already prohibits hospitals from using payments for advertising.

Advertising represents a minuscule portion of hospital budgets, she said.

“I can tell you that it is a fraction of a fraction of 1 percent, thus far, from the hospitals that I have heard from,” she said.

Mayhew said she was concerned the bill’s language would prohibit advertising altogether.

“The Supreme Court recognizes a level of First Amendment protections for commercial advertising,” she said. “The court has found such advertising provides valuable information to consumers.”

Nutting said it’s a waste, because a person’s primary care physician is supposed to make referrals to other doctors or specialists.

“Statewide, if you add all the advertising by all the hospitals, it would be a phenomenal amount of money that’s being spent,” he said. “I’m just hoping you can use this bill to more closely examine how hospitals are spending money, as they complain to us that they are not getting enough money.”

Mayhew reminded the committee that hospitals have not yet received the owed payments.

“We’re owed $424 million for MaineCare services, so we still are waiting,” she said.

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