Hassan signs hospital tax agreement to reduce rates, head off lawsuits over constitutionality

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CONCORD, New Hampshire — Gov. Maggie Hassan has signed into a law an agreement over a tax on hospital revenues that two judges had deemed unconstitutional.

Hassan, who signed the measure Monday, negotiated the settlement with 25 hospitals and legislative leaders to avoid deep cuts to the state budget this year. St. Joseph Hospital in Nashua did not settle.

The tax brought in about $185 million this year and was used for Medicaid and other state spending. The agreement calls for all the money to be spent on health care after the current budget. The hospitals will get more money for the care they provide in exchange for dropping a lawsuit.

The tax rate will drop from 5.5 percent of net patient revenues to 5.45 percent in 2016 and 5.4 percent in 2017.

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