The hospitals brought the lawsuit to the U.S. District Court in July, claiming Medicaid cuts were made for state budgetary reasons while the costs of treating Medicaid patients were not factored. The budget cuts totaled $115 million over two years.
Attorney General Michael Delaney, in a motion to dismiss the case, contended the non-profit hospitals have generated large operating profits, spent generously on executive salaries and have funded multimillion-dollar construction projects in recent years, the report said. Hospitals have not shown irreparable harm as a result of the Medicaid cuts, the state argued.
Since the lawsuit was filed, the involved hospitals have laid off roughly 800 employees while reducing several services, according to the report.
Related Articles on New Hampshire Medicaid:
New Hampshire’s Wentworth-Douglass Considers Job Cuts to Offset Reduced Medicaid Funds
10 Hospitals Sue New Hampshire, Claim Medicaid Reimbursement is Insufficient
HHS Rules New Hampshire Owes Medicaid $35M
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