Mills Makes $2.8 Million in Rural Health Funds Available to PCHC

Gov. Janet Mills announced on Oct. 8 that she would make $2.8 million in Rural Health Transformation Funds available to Penobscot Community Health Care, WMTW reported.

The announcement followed the organization's decision to close its Adult Wellness Center on Union Street in Bangor and move patient care to its other sites. Penobscot Community Health Care said most services from the center would shift to its health center at 1012 Union St., while certain specialty care would be offered at other sites.

In a letter, Mills said she remained "deeply concerned" that the organization was overextended and underfunded because of inadequate planning and management. She said MaineCare spending on federally qualified health centers has risen by nearly 50% over three years and topped $100 million in calendar year 2025. Over the same period, she wrote, the organization's MaineCare encounter rate rose 45% to $283.89.

Penobscot Community Health Care wrote that the governor, her staff and the Department of Health and Human Services had helped it find a path forward while requiring accountability. The organization said it would give the department regular updates on how the money is used, and that it expects to work more closely with the Legislature in 2027.

This story was first reported by WMTW.