Medicaid Taxes Force Exeter Hospital to Take Action

Twenty-two Exeter Hospital workers accepted early retirement packages as part of a cost-cutting move that hospital officials blame on Medicaid taxes.

Hospital spokeswoman Debra Vasapolli said the hospital saw a $9 million increase in its Medicaid Enhancement Tax this year. In 2011, lawmakers essentially eliminated reimbursements for hospitals across the state in an attempt to balance the budget.

"These are environmental demands that not only Exeter Hospital is facing, but others are, too," Vasapolli said.

The early retirements were voluntary, she said. The hospital as of Wednesday had not announced any layoffs.

"We're reviewing all our options," Vasapolli said.