WMUR, July 27, 2011

Elliot Health System has announced more than 100 layoffs it said are the result of cuts in the state budget. The healthcare provider runs Elliot Hospital and other services in southern New Hampshire. On Monday, it announced it was joining nine other hospitals in suing the state for $250 million in cuts to the state's largest hospitals. On Tuesday, Elliot announced it was shutting down a 24-hour medical help line, cutting expenses and laying off 182 employees. "This is a terribly sad day in healthcare," said Doug Dean, president/CEO of Elliot Health Care. "No one wants to see hard-working people, who have done nothing but perform their jobs for this community, suffer from a reduction in force brought on by the failure of the state to manage their own expenses." In announcing the lawsuit, the hospitals said the state assessed a Medicaid Enhancement Tax of 5.5% of a hospital's net revenues, but it also reimbursed the hospitals with a payment equal to the tax. The hospitals said the new state budget continues the tax but eliminates the payment that had been used to pay the tax.

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