Prime Healthcare Foundation Acquires Central Maine Healthcare

As part of the transaction, Prime Healthcare Foundation will take control of three hospitals, two senior care facilities, a medical college, a cancer care center, and more than 40 physician practices across central, western, and mid-coast Maine.

Prime Healthcare Foundation has acquired Central Maine Healthcare, expanding its footprint to 21 hospitals across eight states. The California-based nonprofit, affiliated with for-profit hospital operator Prime Healthcare, will assume full ownership of the Maine health system and invest $150 million over the next five years.

As part of the transaction, Prime Healthcare Foundation will take control of three hospitals, two senior care facilities, a medical college, a cancer care center, and more than 40 physician practices across central, western, and mid-coast Maine. The deal mechanism, described as a membership substitution, makes the foundation the sole corporate member and parent organization of Central Maine Healthcare. The foundation will also assume all debts, obligations, and associated costs. Financial terms were not disclosed.

The acquisition was announced in January 2025 and received approval from Maine regulators in November. As a condition of approval, Prime must continue operating Rumford Hospital and Bridgton Hospital as either critical access or acute care hospitals for at least five years. Central Maine Medical Center must remain a general acute care hospital. Regulators also require that essential services remain unchanged, long-term care facilities continue operations, and Central Maine Medical Center maintain trauma accreditation for at least one year. The foundation must submit annual financial statements to state regulators for three years.

Central Maine Healthcare had reported operating losses in recent years, including a $30 million loss in fiscal year 2024 and a $19 million loss in 2025. In regulatory filings, the system cited an aging population, workforce shortages, low government reimbursement rates, and infrastructure investment needs as financial pressures. The organization serves approximately 400,000 patients and employs more than 600 clinicians.

Prime Healthcare Foundation now owns hospitals in Maine, Texas, Ohio, California, Rhode Island, Pennsylvania, Illinois, and Georgia, with more than $2 billion in assets.

Prime Healthcare, which operates more than 50 hospitals nationwide, has previously faced federal scrutiny. In 2021, the company, its CEO Dr. Prem Reddy, and a California cardiologist agreed to pay $37.5 million to settle allegations involving kickbacks for patient referrals. Earlier settlements in 2018 and 2019 addressed allegations related to false Medicare claims and upcoding.

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