NH DHHS - State Will Seek Reconsideration of HHS Decision On 2004 DSH Audit

Appeals Board Claims 2004 Global Agreement Does Not Cover Audit Issues

Concord, NH – Commissioner Nicholas Toumpas announces that the New

Hampshire Department of Health and Human Services (DHHS) received a

decision from the U.S. Department of Health and Human Services (HHS)

Departmental Appeals Board requiring New Hampshire to repay the $35 million

in Disproportionate Share Hospital (DSH) payments made in 2004 to New

Hampshire hospitals under the Medicaid program.

“The State will seek reconsideration of this recent decision that requires

New Hampshire to repay the $35 million made to 26 New Hampshire hospitals,”

said Commissioner Toumpas. “The Department of Health and Human Services has

60 days to file for reconsideration.”

The Appeals Board said that a 2004 agreement made by then-Governor Craig

Benson with former U.S. Health and Human Services Secretary Tom Thompson

did not cover the issues raised in the federal audit of New Hampshire’s

2004 DSH payments. At the time New Hampshire entered its global agreement

with Secretary Thompson in 2004, it believed that it had satisfied the U.S.

HHS outstanding issues with the DSH program.

Since 2005, New Hampshire has been making changes to the DSH program to

address the global agreement and to respond to new changes in federal law.

“We believe the 2004 agreement resolved the issues raised in the audit and

we will file for reconsideration,” Commissioner Toumpas said. “We will also

continue to work with the Legislature on developing contingencies for this

and other issues facing the DSH program.”