SANFORD — Goodall Hospital has entered an agreement to become a member of the MaineHealth system, pending state review.

MaineHealth, a not-for-profit health care system, is the parent organization of Maine Medical Center, Southern Maine Medical Center and several other hospitals and healthcare organizations. The agreement was unanimously approved by the board of directors of each organization.

“The changing landscape of government reimbursement, skyrocketing costs, increasing regulation and a drive to improve quality is paving the way for many small hospitals to seek membership in larger systems,” said Goodall Hospital and CEO Darlene Stromstad in a prepared statement.

Employees were informed of the decision this morning. Stromstad said workers will remain employees of Goodall Hospital, and the healthcare facility will remain a not-for-profit corporation. The hospital’s endowment will remain with Goodall, she said.

She said the decision was made for several reasons, including rapid changes in the national economy, Maine’s changing economy and potential changes in healthcare nationally.

The Goodall Hospital board of trustees developed an exploratory committee several months ago to analyze options for the hospital’s future and concluded that membership in the MaineHealth system would protect the accessibility and quality of healthcare in the area.

 “We did our homework and decided that MaineHealth was the best option for the hospital and our community,” said Goodall Hospital board chairman Merilee Mapes Perkins.

Goodall Hospital’s membership in the MaineHealth system, which will make MaineHealth the parent organization of the hospital, will allow Goodall to partner with MaineHealth and its members to improve healthcare in York County, proponents said.

“Membership will help Goodall improve its delivery of care to patients, realize efficiencies and cost savings, and ensure health care remains available in the area of York County it serves,” said Bill Caron, Jr., president of MaineHealth.

In response to the flagging economy and the lagging state reimbursements for MaineCare, Goodall Hospital laid off the equivalent of 30 full time employees in January. In March, employees took pay cuts ranging from 4 to 10 percent, with Stromstad taking a 20 percent pay cut.

“By coordinating resources and collaborating on healthcare delivery, we’ll be able to deploy resources more effectively,” said Stromstad. “MaineHealth’s access to technology and specialists will help our hospital to more fully develop quality healthcare models. We’re thrilled to be bringing the resources of Maine’s premier health system to our community.”

Stromstad said there will be no changes in the short term. As MaineHealth and Goodall Hospital begin the due diligence process, they will simultaneously prepare an application to the State of Maine for a Certificate of Need and request an antitrust review. The merger may be completed by the end of 2009.

Goodall Hospital has a history of collaborating with members and affiliates of the MaineHealth system, including development of the Cancer Care Center of York County, a joint partnership with Southern Maine Medical Center and Maine Medical Center. Membership in MaineHealth allows Goodall to plan for York County’s community healthcare needs in conjunction with Southern Maine Medical Center.

— Staff Writer Tammy Wells can be contacted at 324-4444 or twells@journaltribune.com.