N.M. suspends Medicaid payments to hospitals

ALBUQUERQUE, N.M. (AP) - New Mexico is withholding some Medicaid payments to hospitals while the state tries to resolve a funding dispute with the federal government.

State Human Services Department spokesman Matt Kennicott says the quarterly payments suspended in December affect several categories of funding that add up to $250 million annually.

Those funding categories include hospitals that are the sole providers in their community and hospitals that treat more uninsured patients.

The Albuquerque Journal reports that one of the affected hospitals is Christus St. Vincent Regional Medical Center in Santa Fe.

CEO Alex Valdez says he's very concerned about the situation. The hospital receives $6 million annually for being a sole provider.

Kennicott says the dispute with the federal government involves how the amount of supplemental payments to hospitals are calculated.

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