Springfield Hospital sues heads of two Vermont agencies to recover Medicaid funds

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Attorneys for the hospital argued in papers filed in federal court that a new funding formula cut in half the funding used to support the low-income patients treated in Springfield.

Springfield Hospital was the only hospital in the state to have its funding cut significantly by Susan Besio of the Office of Vermont Health Access and Human Services Secretary Robert Hofmann.

The hospital contends the changed funding formula was never submitted to the Center for Medicaid and Medicare Services for approval. Besio and Hofmann both declined comment, saying they hadn't seen the lawsuit.

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