AUGUSTA — A bond was sold Tuesday to pay off $183.5 million in state debt for services provided by hospitals under MaineCare, the state’s Medicaid system, Gov. Paul LePage said.

The payment will trigger more than $300 million in federal matching funds.

“With the sale of the liquor revenue bond, Maine hospitals are now just weeks away from being repaid the more than $484 million in welfare debt owed to them,” LePage said in a prepared statement. “This is good news for these employers and their local communities.”

The payment is being financed with revenue expected from the state’s wholesale liquor business, for which the state is expected to award a new contract later this fall.

According to a release issued by LePage, “the $220 million liquor operation revenue bond received an ‘all-in rate,’ or total interest cost, of just 3.79 percent.”

The additional $36.5 million in the bond sale will pay for interest and fees, and a portion will be set aside in a reserve at the Maine Municipal Bond Bank, according to Jennifer Smith, a spokeswoman for the Department of Administrative and Financial Services.

“High demand from investors helped drive the interest rate down,” said Mike Goodwin, executive director of the Maine Municipal Bond Bank. “The interest shown by investors and the positive ratings received from the rating agencies demonstrate the strength of the liquor business in Maine.”

The Maine Municipal Bond Bank is scheduled to settle the bond sale on Thursday, Sept. 5, according to the release.

House Minority Leader Ken Fredette, R-Newport, heralded the sale in a news release.

“This money will now go out into Maine’s private-sector economy, where it is needed the most,” Fredette said. “I’m very pleased that we are one step closer to getting checks in the hands of Maine employers that are owed millions in unpaid welfare bills by the state.”

Chuck Gill, vice president of public relations for Central Maine Healthcare, which operates Central Maine Medical Center in Lewiston, Rumford Hospital and Bridgton Hospital, said the state and federal payment combined is $46 million for his organization.

Gill said it was important to note the funds were not a “windfall” but a back debt owed since 2009. Gill said hospitals expect to see the final payment by the end of September.

He said hospitals were not paid any interest and that many had to borrow on lines of credit to make up for the lost revenue over the years to meet payroll and other operating expenses. Gill said the payment would give hospitals a better financial footing, but many would be using the funds simply to pay off their own debts and to replenish cash reserves.

“It’s a long time due and we are glad that Gov. LePage took a leadership role on this as the state of Maine should never have gotten this far behind on its debts,” Gill said.

Carolyn Kasabian, chief financial officer for St. Mary’s Regional Medical Center, said that hospital would use the payment to help clear debts.

The Legislature in 2012 changed the way hospitals are paid for MaineCare. The state no longer accrues debt but pays for services when the bills are submitted. Gill said those payments do not usually cover the full costs hospitals incur treating MaineCare patients, but at least the state was current on its payments.

Combined state and federal payments going to other hospitals in the region include St. Mary’s in Lewiston, $23.6 million; Franklin Memorial in Farmington, $16.6 million; Stephens Memorial in Norway, $8.7 million; Rumford Hospital, $3.4 million; and Bridgton Hospital, $1.8 million.

sthistle@sunjournal.com