LACONIA — Henry Lipman, senior vice-president of LRGHealthcare, yesterday welcomed the agreement reached Thursday between the state and 25 of its 26 hospitals, by which the hospitals will withdraw litigation against the state while the state will resume funding to hospitals for uncompensated care and apply revenue from the Medicaid Enhancement Tax to Medicaid services.
Lipman said that without a settlement the 75 cents on the dollar Franklin Regional Hospital receives in remimbursement for the uncompensated care it provides was at risk. Meanwhile, when the Legislature sharply reduced reimbursements for uncompensated care in 2011, payments at Lakes Region General Hospitals shrank to only 12-percent of costs. Lipman said that reimbursements will rise in 2015 and approach 50-percent of costs the following year, estimating a return to the hospital of between $4-million and $6-million.
"This settlement is good for the state, for our hospitals, for our communities and for healthcare," Lipman said. But, he cautioned that the agreement reached yesterday still requires the approval of the Legislature, which will consider it on Wednesday, June 4.