New Hampshire Hospitals Expected to Pay More in Medicaid Taxes

Several New Hampshire hospitals will be adjusting their Medicaid Enhancement Tax filings after CMS clarified what outpatient services are taxable, according to a Seacoast Online report.

This past summer, state hospitals and the New Hampshire Hospital Association asked CMS what inpatient and outpatient services are taxable for the MET under federal regulations. State guidelines required higher MET payments, and consequently, hospitals paid under the federal guidelines.


The MET is a 5.5 percent tax on all hospitals' net patient service revenue, which is normally returned to hospitals through the Disproportionate Share Hospital program, but New Hampshire cut those reimbursements in its latest state budget, prompting 10 hospitals to sue the state.

The additional payments from the MET will go toward reducing the state's $41 million deficit, but NHHA President Steve Ahnen does not believe the additional hospital payments will completely cover the shortfall, according to the report.

Related Articles on New Hampshire Hospitals and Medicaid:

New Hampshire AG Asks Court to Throw Out Lawsuit Over Medicaid Cuts

Some New Hampshire Hospitals Pay Less in Medicaid Enhancement Taxes in Response to Cuts

New Hampshire's LRG Healthcare to Stop Accepting Medicaid Patients

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