Concord Hospital sues NH DHHS to forestall Medicaid overpayments to state

Suit also names Center for Medicare and Medicaid Services and the U.S. DHHS as defendants
Concord Hospital

Concord Hospital has sued the NH Department of Health and Human Services in U.S. District Court to forestall the state from recouping $8 million in alleged overpayment of Medicaid uncompensated care funds — so-called DSH payments —  and from redistributing those funds to other hospitals in the state.

The suit also names the Center for Medicare and Medicaid Services and the U.S. Department of Health and Human Services as defendants for approving amendments to the state’s Medicaid plan despite the shortcomings of the plan.

Medicaid is a state and federal program. The federal government provides funds on condition the state contributes matching funds and administers the program through a Medicaid State Plan. DSH payments are made to compensate hospitals for serving disproportionate numbers of low-income patients. The payments in dispute accrued between 2011 and 2017.

The Medicaid Act mandates that rates of payment for hospital services, including DSH payments, be determined by a public process. The state plan does not meet the requirements of the statute unless it includes “a description of the methodology used by the state to identify and make (DSH) payments.”

The suit claims “None of the Medicaid State Plans in effect during the 2011-2017 period contain a legally sufficient description of the methods used to calculate or audit uncompensated care costs.”  Nor did the plan include an effective process to challenge NH DHHS’s determination of overpayment of those costs.

“NH DHHS effectively required Concord Hospital to report uncompensated care costs between 2011 and 2017 without any comprehensive guidance on which costs are allowable and the sort of data that would support them,” the suit charges.

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