An Act To Provide for the Merger of Hospital Administrative District No. 4 into MRH Corp., a Maine Nonprofit, Nonstock Private Corporation
Maine Legislature, Session 129, LD 1708
Committee Amendment CA_A_H537 (House)

COMMITTEE AMENDMENT "A "to H.P. 1220, L.D. 1708, Bill, "An Act To 
Provide for the Merger of Hospital Administrative District No. 4 into MRH Corp., a 
Maine Nonprofit, Nonstock Private Corporation" 
Amend the bill by striking out everything after the title and inserting the following: 
'Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, the Legislature created Hospital Administrative District No. 4 by Private 
and Special Law 1973, chapter 76, in order to provide for the health, welfare and public 
benefit of the inhabitants of the district; and 
Whereas, the district has determined that it is unable to continue to fulfill its 
purpose of providing for the health, welfare and public benefit of the inhabitants of the 
district unless it is affiliated with a strong, integrated health care system; and 
Whereas, the district has decided that it would be in the best interest of the district 
to affiliate with Eastern Maine Healthcare Systems, doing business as Northern Light 
Health, because of its experience of successfully operating other critical access hospitals 
and the opportunity to create a network with other Eastern Maine Healthcare Systems' 
hospitals located in the Piscataquis region to continue and improve the delivery of high-
quality health care to the inhabitants of the district and the entire Piscataquis region; and 
Whereas, as authorized by the affirmative votes of their respective governing 
boards, the district and Eastern Maine Healthcare Systems have entered into an 
agreement and plan of merger dated March 19, 2019 setting forth the terms and 
conditions by which the district will merge into MRH Corp., a Maine nonprofit, nonstock 
private corporation having Eastern Maine Healthcare Systems as its sole member, as soon 
as reasonably practicable; and 
Whereas, in advisory votes held during April 2019 at town meetings in 12 towns 
and at a town council meeting in one town comprising the district, 12 of the 13 towns, 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A' to H.P. 1220, L.D. 1708 
representing 97.4% of the population of the district, indicated their approval of the 
merger of the district; and 
Whereas, it is in the public interest for the district to be able to merge into MRH 
Corp. as soon as practicable, as long as all conditions and the parties' respective 
obligations under the agreement and law are satisfied, to ensure the continuation of the 
provision for the health, welfare and public benefit of the inhabitants of the district; and 
Whereas, in the judgment of the Legislature, this merger is in the public interest; 
and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. Merger of Hospital Administrative District No. 4 and Eastern 
Maine Healthcare Systems authorized. Notwithstanding any provision of Private 
and Special Law 1973, chapter 76, as amended, Hospital Administrative District No. 4, as 
created by Private and Special Law 1973, chapter 76, referred to in this Act as "the 
district," is authorized to merge into MRH Corp., a nonprofit, nonstock private 
corporation having Eastern Maine Healthcare Systems as its sole member. 
The merger is subject to the following. 
1. Notwithstanding any provision of Private and Special Law 1973, chapter 76, as 
amended, and the Maine Revised Statutes, Title 13-B, section 901, subsection 1, except 
for the vote of the directors that occurred on March 19, 2019 and the advisory vote of the 
town inhabitants in April 2019, no vote of the district, any towns in the district or the 
inhabitants of either the district or towns in the district is required to authorize the 
merger; 
2. 
The merger may occur only if, upon the effective date of the merger, all 
indebtedness of the district is paid or adequate provision for the payment of that 
indebtedness is made by the assumption of indebtedness of the district by MRH Corp., by 
defeasance of any outstanding bonds of the district or otherwise; 
3. 
The merger may occur only if, upon the effective date of the merger, the 
responsibilities for all obligations and liabilities of the district, including liability 
stemming from the merger and related actions of the district, are transferred, merged and 
vested in MRH Corp.; 
4. The legal effect of the merger must be the same as if the district were a Maine 
nonprofit corporation organized pursuant to and governed by the Maine Nonprofit 
Corporation Act; 
5. The merger may occur only if the certificate of need process as outlined in the 
Maine Revised Statutes, Title 22, chapter 103-A is successfully completed; and 
6. 
MRH Corp. takes all endowment funds held by the district subject to any 
restrictions on use applicable to those funds. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to H.P. 1220,L.D. 1708 
Sec. 2. Effective date and effect of merger. The merger takes effect after all of 
the conditions set forth in section 1 have been satisfied and all of the conditions set forth 
in the agreement and plan of merger dated March 19, 2019 have been satisfied or waived 
per the terms of the agreement and plan of merger and the articles of merger are filed 
with and accepted by the Secretary of State. 
The following provisions apply on the effective date of the merger: 
1. MRH Corp. is the single surviving corporation, Eastern Maine Healthcare Systems 
is MRH Corp. 's sole member and the district ceases to exist and operate; 
2. MRH Corp. shall continue to serve the health care needs of the communities 
served by the district by offering a complement of clinical core services as described in 
the Section 6.7 and Schedule 6.7(a) of the merger agreement and plan of merger 
beginning on the effective date of the merger; 
3. MRH Corp. has all the rights, privileges, immunities and powers and is subject to 
all of the duties and liabilities of a corporation organized under the Maine Revised 
Statutes, Title 13-B; 
4. All property, whether real, personal or mixed, and all debts due on whatever 
account, and all other choses in action, and all other interest, of or belonging to or due to 
the district, are deemed to be transfell'ed to and vested in MRH Corp. without further act 
or deed. The title to any real estate, or any interest therein, vested in the district may not 
revert or be in any way impaired by reason of the merger; 
5. Governmental quasi-municipal rights, privileges and immunities of the district do 
not transfer, merge or otherwise vest in MRH Corp.; and 
6. Mayo Regional Hospital is no longer a municipally funded hospital as specified in 
Title 36, section 2891, subsection 1-A. 
Sec. 3. Repeal of Hospital Administrative District No. 4 charter. After the 
articles of merger are filed with and accepted by the Secretary of State, the Secretary of 
State shall notify the Joint Standing Committee on State and Local Government of the 
merger. The joint standing committee shall introduce legislation to repeal Private and 
Special Law 1973, chapter 76 and amend the Maine Revised Statutes, Title 36, section 
2891, subsection 1-A to remove reference to Mayo Regional Hospital. 
Sec. 4. Appropriations and allocations. The following appropriations and 
allocations are made. 
HEALTH AND HUMAN SERVICES, DEPARTMENT OF 
Medical Care - Payments to Providers 0147 
Initiative: Adjusts funding in the Medical Care - Payments to Providers program between 
the General Fund and the Other Special Revenue Funds related to an increase in hospital 
tax funding being received from the newly established MRH Corp. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to H.P. 1220, L.D. 1708 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
Medical Care-Payments to Providers 0147 
2019-20 
($1,063,239) 
($1,063,239) 
2019-20 
$1,063,239 
$1,063,239 
Initiative: Provides funding for the reimbursement of the cost of the tax. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
FEDERAL EXPENDITURES FUND 
All Other 
FEDERAL EXPENDITURES FUND TOTAL 
HEALTH AND HUMAN SERVICES, 
DEPARTMENT OF 
DEPARTMENT TOTALS 
GENERAL FUND 
FEDERAL EXPENDITURES FUND 
OTHER SPECIAL REVENUE FUNDS 
DEPARTMENT TOTAL-ALL FUNDS 
2019-20 
$116,314 
$116,314 
2019-20 
$206,602 
$206,602 
2019-20 
($946,925) 
$206,602 
$1,063,239 
$322,916 
2020-21 
($1,063,239) 
($1,063,239) 
2020-21 
$1,063,239 
$1,063,239 
2020-21 
$117,122 
$117,122 
2020-21 
$205,794 
$205,794 
2020-21 
($946,117) 
$205,794 
$1,063,239 
$322,916 
Emergency clause. 
In view of the emergency cited in the preamble, this 
legislation takes effect when approved.' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ·A" to H.P. 1220, L.D. 1708 
SUMMARY 
This amendment clarifies that Hospital Administrative District No. 4 is the party to 
the merger and that the district's quasi-municipal rights, privileges and immunities do not 
transfer to the new nonprofit corporation created by the merger. It clarifies that upon the 
merger, Mayo Regional Hospital is no longer a municipally funded hospital under the 
Maine Revised Statutes, Title 36, section 2891. It adds reference to the advisory vote of 
the district inhabitants required by Private and Special Law 2019, chapter 5. It conditions 
the merger on the assumption by the new corporation of all the obligations and liabilities 
of the district. It removes the exemption from antitrust laws and stipulates that the 
merger is subject to the certificate of need process outlined in Title 22, chapter 103-A. It 
requires the Secreta1y of State to notify the Joint Standing Committee on State and Local 
Government when the articles of merger have been filed with and accepted by the 
Secretary of State. It requires the joint standing committee, once notified that the articles 
of merger have been accepted, to introduce legislation to repeal the district charter and 
remove reference to Mayo Regional Hospital from Maine's tax code. 
The amendment also adds an appropriations and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 06/05/19 feac 
LD 1708 
LR 2490(02) 
An Act To Provide for the Merger of Hospital Administrative District No. 4 into MRH Corp., a Maine 
Nonprofit, Nonstock Private Corporation 
. 
Fiscal Note for Bill as Amended by Committee Amendment /J{/-/-f;J ~ 
Committee: State and Local Government 
Net Cost (Savings) 
General Fund 
Appropriations/ Allocations 
General Fund 
Federal Expenditures Fund 
Other Special Revenue Funds 
Revenue 
Federal Expenditures Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2019-20 
($946,925) 
($946,925) 
$206,602 
$1,063,239 
$206,602 
$1,063,239 
FY2020-21 
($946,117) 
($946,117) 
$205,794 
$1,063,239 
$205,794 
$1,063,239 
Projections 
FY 2021-22 
($946,053) 
($946,053) 
$205,730 
$1,063,239 
$205,730 
$1,063,239 
Projections 
FY 2022-23 
($946,053) 
($946,053) 
$205,730 
$1,063,239 
$205,730 
$1,063,239 
The bill includes General Fund appropriations to the Department of Health and Human Services of $946,925 in fiscal 
year 2019-20 and $946,117 in fiscal year 2020-21 to adjust the funding in the Medical Care - Payments to Providers 
program related to an increase in hospital tax funding being received from the newly established MRH Corp. Other 
Special Revenue Funds allocations are included for the increased hospital tax as well as Federal Expenditures Fund 
allocations for the FMAP match. 
LR2490(02) - Fiscal Note - Page 1 of 1