CONCORD — City Councilwoman and Democratic gubernatorial candidate Cinde Warmington expressed deep concern about the future financial health of the state's 26 hospitals and outgoing Republican Gov. Chris Sununu's “unilateral action” to cut federal taxes paid to those hospitals by $35 million annually over the next decade.

“I am concerned that the conversation somehow ended abruptly and the governor took unilateral action to cut funding to our hospitals without assessing the damage,” Warmington said after speaking on the issue at the Executive Council meeting on Wednesday.

“I am very concerned about the impact of reducing the hospital tax rate that is repaid from 91 percent to 80 percent” and diverting some of that money to community Medicaid providers that provide both health care and mental health care and do not pay the tax.

“I think this is a big concern for hospitals, and I know they are very afraid that there will be a reduction in their services,” she said.

Warmington said she had heard lawmakers could do something on Veto Day in September, but she didn't know what that would be or whether Sununu would accept it.

Any revived bill would also need approval from Sununu, who did not appear to be interested in further negotiations on the issue when he answered questions from InDepthNH.org at a press conference in his office last week. It would also require a two-thirds majority in both the House and Senate.

Instead, he has ordered Health and Human Services Commissioner Lori Weaver to present the Biden administration with a new formula for the next decade that would reduce reimbursements and redirect the money to community-based care facilities that cover everything from physical health to mental health to substance abuse treatment.

Steve Ahnen, president and CEO of the New Hampshire Hospital Association, said his organization is in discussions with all potential gubernatorial candidates and elected officials in the hopes that the governor's plans will change.

“We are trying to find a way forward,” Ahnen said in a telephone interview.

Attempts to obtain comments from Republican candidates Kelly Ayotte and Chuck Morse on the issue were unsuccessful.

Former Manchester Mayor Joyce Craig said, “The state continues to cut costs for our citizens and communities, greatly increasing the cost of living in New Hampshire. Now we are seeing the same thing happen to our hospitals as the state hits them with a $300 million MET tax.”

“Our hospitals and health care workers dedicate their lives to the health of New Hampshire residents, and drastic cuts to hospital funding put essential services like obstetric care, inpatient mental health care and emergency surgery at risk. It's time New Hampshire got a governor who is committed to working with our state's communities and industries to ensure our state works for everyone. That's what I did as mayor and that's what I will do as governor,” Craig said.

The other Democratic gubernatorial candidate, Jon Kiper, who refused to commit to opposing a broad-based tax for New Hampshire, said:

“For decades, our state legislature has shirked its responsibility to the Prevention and Treatment Fund, preferring to use the revenues for other projects. Sununu and the NHGOP are cutting corners. Republicans regularly neglect entire programs and hope that the consequences do not occur before their term ends…

“Because of foolish commitments like The Pledge, state legislators have relied on budgetary tricks like this hospital program, all to avoid raising the revenue needed to run a state. Now we are running out of revenue sources to keep our state running,” Kiper said.

InDepthNH.org is a nonprofit watchdog news website published by the New Hampshire Center for Public Interest Journalism.