MaineHealth, the parent organization of MaineHealth Pen Bay Hospital and numerous medical offices and services in the Midcoast, has relocated its headquarters and administrative offices from Portland to an office building that MaineHealth owns in Westbrook.

The move from Portland to Westbrook is part of a larger plan to reduce overhead so as to continue to provide high-quality, affordable care for patients and the broader community, said MaineHealth, in a news release. The nonprofit said the move would save approximately, "$1.5 million annually in overhead expenses, and reduces the need for capital investment in non-clinical settings over the next three to five years."

Earlier this year, MaineHealth agreed to sell its headquarters property at 110 Free St., Portland, to the Portland Museum of Art. The sale terms included a two-year lease-back provision to allow time for MaineHealth to relocate its executive offices. After studying several alternatives, it was determined that the most cost-effective option would be to relocate approximately 300 care team members from its Free Street office and other administrative locations to 1 Riverfront Plaza in Westbrook, the release said.

"The pandemic really changed the way people in administrative roles work," said Kelly Elkins, chief operating officer of MaineHealth, in the release. "People are working from home more when it makes sense to do so. This has led to an under-utilization of our Free Street offices."

The move is part of a larger effort by MaineHealth to better control the cost of care, said MaineHealth.

"By reducing variations in how care is delivered and other initiatives, MaineHealth has found savings of $250 million over the last three years," the release said. "Additionally, leaders have been instructed to hold administrative cost growth to 0% on an absolute dollar basis in fiscal 2027. That means finding ways to absorb cost-of-living increases for staff and higher prices for purchased goods and services. All told, that initiative is expected to save the health system $25 million in the 2027 fiscal year."

Currently, the 134,000 square-foot Riverfront Plaza, which includes a parking garage with 540 spaces, houses much of MaineHealth’s Information Technology department, as well as clinicians and administrators with MaineHealth Behavioral Health. Elkins said that, with some modest remodeling work – including the creation of shared workspaces for those who work from home part-time - the 300 care team members from Free Street and other administrative offices can be easily accommodated. The move is expected to take place in early 2027.

"People are excited about the prospect of working in Westbrook," Elkins said. "The downtown is vibrant and easy to get to. The team members who work there currently tell us they really like it."

Still, she said the main reason for the move is to support MaineHealth’s efforts to reduce its costs and keep care affordable.

"It is incumbent on us to be good financial stewards of our not-for-profit health system," said Elkins. "An important part of achieving our MaineHealth vision of working together so our communities are the healthiest in America is to do all we can to address the affordability challenges in the overall system of care in Maine, New Hampshire and across the nation."

About MaineHealth:

MaineHealth includes a Level 1 trauma medical center, eight additional licensed hospitals, comprehensive pediatric care services, an extensive behavioral health care network, diagnostic services as well as home health, hospice and senior care services.

With more than 2,000 employed providers and approximately 23,000 care team members, MaineHealth provides preventive care, diagnosis and treatment to 1.1 million residents in Maine and New Hampshire.

MaineHealth hospitals include MaineHealth Behavioral Health at Spring Harbor in Westbrook, MaineHealth Franklin Hospital in Farmington, MaineHealth Lincoln Hospital in Damariscotta, MaineHealth Maine Medical Center in Portland, Biddeford and Sanford, MaineHealth Memorial Hospital in North Conway, N.H., MaineHealth Mid Coast Hospital in Brunswick, MaineHealth Pen Bay Hospital in Rockport, MaineHealth Stephens Hospital in Norway and MaineHealth Waldo Hospital in Belfast.

MaineHealth also includes MaineHealth Barbara Bush Children’s in Portland, MaineHealth Behavioral Health in Westbrook, MaineHealth Home Health and Hospice in Saco, the MaineHealth Institute for Research in Scarborough, the MaineHealth Medical Group and MaineHealth NoDx in Scarborough. MaineHealth affiliates include Maine General Health in Augusta and Waterville. It is also a significant stakeholder in the MaineHealth Accountable Care Organization in Portland and a joint venture partner in the New England Rehabilitation Hospital in Portland.