A new CMS rule changes DSH payment limits

Description

Abstract: A new CMS final rule that addresses how third-party payments are treated when determining Medicaid disproportionate share hospital (DSH) payments to health systems could hurt children’s and safety net hospitals that rely heavily on Medicaid DSH funding. This article explains the role of the DSH limit and the new changes. It also discusses the ramifications of these changes, including the claim that the new rule could dissuade hospitals from treating large populations of low-income and uninsured patients. A sidebar reports the American Hospital Association’s response to the rule.