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State responds to hospitals' lawsuit

Last modified: 9/27/2011 12:00:00 AM
The state has responded to a lawsuit filed by 10 New Hampshire hospitals that contests a sharp reduction in Medicaid reimbursements.

Ten of the state's 13 biggest hospitals sued the state in July after the Republican-controlled Legislature passed a budget that included a $115 million cut in Medicaid funding over two years, a reduction made twice as large when considering the money would secure matching federal dollars. The hospitals said the reduction could violate federal law requiring health care access for the poor.

The state's motion to dismiss the case, filed Friday in Merrimack County Superior Court, argues that federal Medicaid law cannot overrule the state's laws. The lawsuit, submitted by Attorney General Michael Delaney, also argues that the hospitals have not shown 'irreparable injury' as a result of the Medicaid cuts.

Concord Hospital was not one of the 10 hospitals in the lawsuit because officials said Concord was committed to continuing its Medicaid services and the hospital was in a financial position to sustain the loss of funding. Other hospitals have said the cuts forced them to lay off hundreds of employees.


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