New Hampshire Says Hospitals Broke Charity Laws

A non-profit organization that oversees two hospitals in Manchester, N.H., violated state law governing charities by radically changing the missions of both facilities, according to a report issued by the state Attorney General.

Optima Health, which has controlled Elliot Hospital and the Catholic Medical Center since a 1994 merger, failed to consult state officials or the public, as required by the state, before it made changes in services available at the hospitals and in the way the hospitals are governed.

Attorney General Phillip T. McLaughlin said he was concerned that Optima transferred virtually all power from the hospitals’ boards of directors to Optima Healthcare, a regional holding company that includes the two Manchester hospitals and a third hospital in Nashua.

The Attorney General has called on Optima to make changes to avoid being taken to court.

Optima officials said they would develop an “action plan” to respond to the issues raised by the state.