The MET is a 5.5 percent tax on all New Hampshire hospitals’ net patient service revenue used to receive matching funds from the federal government. Funds are then dispersed back to hospitals based on how many Medicaid and indigent patients they serve.
Hospitals and New Hampshire officials have generally agreed on what inpatient services are taxable, but taxable outpatient services have been foggier. In the bulletin, Department of Revenue officials outlined the taxable guidelines for 17 different categories of outpatient services, such as ambulatory surgery centers, lab services and wound care clinics.
For more than the past two years, hospitals and state officials have battled over Medicaid. New Hampshire’s hospitals began clashing with state legislators after they approved a plan to cut $115 million from the program — and hospital reimbursements — over two years. Ten hospitals also filed a lawsuit against the state for reduced Medicaid payments.
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