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MaineCare Shortfall Forces Caribou Agency to Cut 12 Jobs, Drop 154 Clients

Northern Maine General says lagging MaineCare reimbursements and staffing shortages will end its outpatient and case-management programs by the end of March.

By Maine Business Wire Staff

Aerial view of Portland, Maine
File photo: Aerial view of Portland, Maine. Photo: Quintin Soloviev / CC BY 4.0 via Wikimedia Commons

Northern Maine General will shut down its outpatient programs, along with its community-based behavioral health and case management services, by the end of March, affecting 154 clients and 12 staff jobs, the Bangor Daily News reported.

CEO Michelle Raymond said the Caribou-based social services agency tried cutting costs, leaving some retired positions unfilled and stretching staff duties. But a shortage of workers and MaineCare reimbursements that failed to keep up with rising costs made the programs unsustainable, she said, adding that providers who rely on MaineCare rates struggle to offer competitive wages.

Most affected clients receive behavioral health home coordination or case management, including targeted services for people with intellectual and developmental disabilities; some receive clinical therapy. Case managers will reach out to each client to plan a transition, and Raymond said she has asked other area providers whether they can take referrals. Some of the departing employees have worked at the agency for 25 years.

A 2025 audit by the Portland firm Berry Dunn questioned whether the organization could survive as a going concern, but Raymond said the report did not prompt the closures. The agency's home and community-based services, brain injury residential waiver program and shared living oversight will continue. It closed Mercy Home, its Eagle Lake nursing home, in May 2025.

This story was first reported by Bangor Daily News.

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