New Hampshire contracts Dartmouth to operate Hampstead Hospital amid budget changes

Hampstead Hospital's operations will see a significant shift as the New Hampshire government has officially transitioned management to Dartmouth-Hitchcock Medical Center. This change, approved by the Executive Council in December 2024, marks a pivotal moment in the state's healthcare management strategy, effectively removing the state from direct cost accounting responsibilities associated with the hospital.

The transition began when the state purchased Hampstead Hospital from Hampstead Outlook LLC in June 2022. Initially, the state entered into a sole-source contract to provide clinical staff and administrative support. However, after two years, the management structure evolved, leading to a contract with Dartmouth-Hitchcock that primarily focuses on physician-level staffing.

As part of the transition, the state has entered into a lease agreement with Dartmouth-Hitchcock, allowing them to operate the facility while maintaining some oversight through a joint operating committee. This committee ensures that the state retains a degree of influence over the hospital's strategic direction.

Financially, the state has zeroed out the budget for Hampstead Hospital operations for the fiscal years 2026 and 2027, reflecting the complete transfer of operational responsibilities. The state will continue to receive an administrative fee during the transition period, which lasts up to one year, as Dartmouth-Hitchcock takes full control.

This strategic move is expected to streamline operations and improve healthcare delivery in the region, as the state steps back from direct management while still ensuring oversight and support during the transition. The implications of this decision will be closely monitored as the state and Dartmouth-Hitchcock work together to implement the new operational framework.