There’s a lot of tension between New Hampshire and hospitals in the state right now.

The source of the problem....money, of course.

Thursday morning the two sides clashed in federal court over a cut in how much the state pays to treat low-income patients.

And then this afternoon, lawmakers drilled down on a tax dispute with some of the hospitals.

Even before the budget passed in June the state’s relationship with hospitals was strained.

But by the time the dust settled the relationship had been put in the ICU.

See, to balance the budget, lawmakers had taken $120 million dollars that had been earmarked for low-income Medicaid patients.

Hospital attorney Scott O’Connell says that last move was just too much.