Firm News

This week marks a major accomplishment for Connecticut’s hospitals and the State. On December 18, 2019, the Connecticut General Assembly approved a global settlement agreement between the Connecticut Hospital Association, member hospitals and the Lamont administration to resolve pending litigation challenging the State’s hospital tax and the adequacy of Medicaid reimbursement to hospitals. The Governor signed the legislation the next day. The agreement, which has been valued at $1.8 billion, will increase Medicaid rates paid to hospitals, provide for tax stability and enhanced supplemental payments, and provide retroactive payments. Most critically, the agreement provides needed stability for the hospitals and the State of Connecticut for many years to come. The agreement remains subject to approval by the Centers for Medicare and Medicaid Services.

Wiggin and Dana health care partner Maureen Weaver served as counsel to the Connecticut Hospital Association and many individual hospitals in connection with the many-year effort that led to this resolution, including challenges to both the adequacy of Connecticut’s hospital Medicaid rates as well as related tax appeals. “I am honored to have represented Connecticut’s hospitals in this landmark settlement that paves the way for a new collaborative relationship between the hospitals and the State of Connecticut,” she said.  Kim Rinehart, who was also involved in the overall effort, led Wiggin and Dana’s team litigating the Medicaid rate appeals. Ms. Rinehart commented: “This has been one of the most rewarding representations of my career.” Jeffrey Babbin, a member of Wiggin’s appellate practice group, was also deeply involved in the hospital tax appeals, provided overall strategic insights along the way, and assisted in negotiating the settlement agreement. Other Wiggin and Dana lawyers who contributed substantially to this effort included Peter Gruen, Benjamin Daniels, Elisabeth Pimentel and Ivana Greco.

More information on the settlement can be found in the press release from Governor Lamont.