NH Hospitals Tell Half Truths

Local and statewide news sources have inundated us with stories regarding the state budget and its impact on the financial well being of most all NH hospitals, particularly Medicaid payments. In return the hospitals, most not all, have been more than accessable to the media in a rush to lay blame on the legislature for their financial problems. In fact they have filed a lawsuit!

The first question to ask ourselves is; Why isn't Concord Hospital joining the hospital coalition lawsuit? Answer; they know how to run their business and they recognize the pending litigation is likely frivolous, apt to lose in court and therefore a further waste of money and resources. The second question that requires an answer is; How can the hospitals be in desperate financial trouble and yet pay their executives millions and millions in wages and benefits? One hospital pays over 1 million dollars per year to just one person! So what are the facts surrounding this issue and why did the legislature take the budgetary action?

During the last biennium the state received $161 million in extra Medicare funds that offset state general funds. The Obama administration stopped these payments as of july 1st - the beginning of the new state biennium budgeting period - leaving a huge hole in the Medicaid budget. Previously one way to help make up the shortfall to the Medicaid budget had been to reassess and reduce Medicaid eligibility. The new ObamaCare Act prohibits that solution. Left with little else to work with due in part to the poor economy and in large part by the $161million reduction in Fedral aid the state was forced to look elsewhere for a solution. Governor Lynch proposed in his budget to transfer $42 million in uncompensated care payments into Medicaid. The legislature INCREASED this transfer by $115 million to preserve Medicaid. Together this action nearly fully funded Medicaid to the extent it was funded in the last biennium. Medicaid was the legislatures top priority. Medicaid payments to hospitals remained very consistent with previous years.

You should know also that many of the states smaller hospitals are financially stretched to the limit, some may be losing money. The legislature in an effort to help assure critical health care to our citizens in rural NH where there are smaller critical care hospitals, insured that these facilities continued to receive their uncompensated care payments.