State funding cuts are affecting about 120 assisted-living facilities in Maine that care for 4,000 needy residents. The cuts from the state Department of Health and Human Services took effect Aug. 1.

The money was being paid to the facilities' operators to ensure that residents with illnesses would not lose their beds during periods of prolonged hospitalization. Now the cuts are presenting new challenges for providers who are already facing rising food and fuel costs.

Richard Erb of the Maine Health Care Association told Maine Public Radio that the cutbacks stunned members of his group and couldn't have come at a worse time.

DHHS Commissioner Brenda Harvey says she'll be monitoring the situation during the next several months and will report back to the Legislature.