FARMINGTON — Like many small, rural Maine hospitals, Franklin Memorial Hospital is losing money, interim President and Chief Executive Officer Timothy Churchill said at a community forum Tuesday.

In the past fiscal year, he noted, the 36 hospitals in Maine had a combined operating income of $29 million. However, when the two largest hospitals, Maine Medical Center in Portland and Eastern Maine Medical Center in Bangor were taken out of the equation, the remaining 34 hospitals had a combined operating loss of $50 million.

“A lot of the revenue we used to see in the past is migrating to larger facilities,” Churchill said.

FMH is part of Franklin Community Health Network. Under a plan being discussed, the members of MaineHealth, including FCHN, would create a new system board of trustees that would have authority over a systemwide budget and be the ultimate governing authority for MaineHealth member organizations.

L. Clinton Boothby, chairman of the FCHN board, said being part of MaineHealth has helped the network obtain more legal resources and buy items less expensively. Each hospital within the system has its own budget, but shares services with the other MaineHealth hospitals.

The goal, Boothby said, is one financial model for all of MaineHealth. The downside, he noted, is some loss of local control.

According to statistics in a video presented at the forum, during the next 10 years the number of people 65 and older in Maine will increase 25 percent. This will create a strain on hospitals, which are already having to provide extensive charity care for those who can’t afford services.

“One thing that hasn’t gone away is the demand for care,” said Dr. Jay Naliboff, vice president of medical affairs at FMH. “What isn’t there as much is the payment sources and enhancements from the federal government that used to support us.”

Dr. Heidi Decker, FMH president of medical staff, pointed out that for doctors, care of patients is much more complex and time-consuming than it used to be.

“It’s no longer a primary care doctor taking care of patients,” she said. “It’s a team taking care of patients.”

William L. Caron Jr., president of MaineHealth, said, “What’s happening is we’re starting to see local boards make financial decisions that are inconsistent with our philosophy. The solution is to put all of these resources together in a single pot.”

Boothby explained how the unified board would work. For the first five years, a representative from each MaineHealth member hospital will be on the board. After that, a nominating committee will look for the most qualified nominees to be on a systemwide board.

Irving Faunce of Wilton asked if there would be a board of governance for FCHN under the new system.

“The leadership of this hospital, the executive and clinical leadership, has been really invested in the community,” he said. “Who is going to be determining who that leadership is, and how will they be evaluated?”

Caron said a local board will do oversight of quality, credentialing of medical staff and needs-assessment at FMH.

Annette Backus of Wilton mentioned that for years she was a member of a patient quality committee at FMH until it was disbanded with no explanation. She wanted to see it reinstated.

“I think it’s good public relations,” Backus said.

She wanted to see patients, even in the unified system, be able to maintain contact with their primary care doctors during extended hospital stays.

Naliboff said the patient quality committee was combined with another one to form the Quality Council at FMH.

“We need a community advisory council,” he added. “We’ve talked about it and talked about it, but just didn’t do it.”

bmatulaitis@sunmediagroup.net

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