The Attorney General’s Office Thursday argued a federal judge should dismiss a lawsuit filed by 10 hospitals against the state.

Hospitals are suing over the state’s decision to cut how much it pays doctors and hospitals for treating low-income Medicaid patients.

They say those cuts violate New Hampshire’s agreement with the federal government to provide care to the poor.

But Senior Assistant Attorney General Nancy Smith says hospitals have no legal authority to question state reimbursement rates.

LRGH Steers Clear of Medicaid Patients

Oct 26, 2011

More than 3,000 people on Medicaid in the Lakes Region will have to switch from their regular doctors by next month.  They are being reassigned to other area clinics.

Primary care doctors that are part of LRGH Healthcare will no longer treat Medicaid patients.  LRGH President, Tom Clairmont, says the joint federal-state program for the poor and disabled, covers less than half the cost of providing care.  Clairmont says that formula undermines the hospital’s ability to provide the most essential care.