Dive Brief:
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A New Hampshire Superior Court judge has ruled that a tax paid by the state hospitals is unconstitutional, and is requiring that the state refund part of the taxes paid by the plaintiff.
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The challenge to the tax was brought by Northeast Rehabilitation Hospital in Salem, which paid $1.4 million to the state in 2011 under what's called the Medicaid enhancement tax. Under the current system, hospitals pay a set percentage based on revenue.
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New Hampshire officials are considering an appeal to the decision, as the tax is a major source of revenue for the state.
Dive Insight:
Given that the tax is a major source of revenue for New Hampshire, I'd wager that this battle is far from over. If nothing else, state officials will have to deal with a similar lawsuit involving three other hospitals that's also working its way through the legal system. While the tax is an attractive prize, it's easy to see why hospitals don't want to pay it.