New Hampshire Faces $36M Budget Shortfall

CONCORD, NH - The state of New Hampshire is facing a $36 million budget shortfall after a federal court decision about hospital payments, according to the Concord Monitor.

The problem stems from an ongoing, legal battle over how much state and federal governments must pay hospitals for uncompensated care under the Medicaid law. Last year, the legislature set aside $166 million for an uncompensated care fund in fiscal 2018.

Unfortunately, that number relied on a new payment formula from the federal Centers for Medicare and Medicaid Services that allowed for lower payouts and the shortfall could total close to $36 million.

Officials in the governor’s and state attorney general’s offices said they’re aware of the problem – which first appeared in early March – and are working with hospitals to craft a way forward. But the shortfall has thrown a political and financial wrench into an already-delicate time in the legislative calendar.

“They did not carry in the budget enough for the obligation,” said Scott O’Connell, an attorney representing a group of hospitals. “So somebody is going to be shorted.”

May 31 is the federally-mandated payment deadline to hospitals under the Medicaid law.

For a full rundown of the budget battle, visit the Concord Monitor.