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CMS Releases Medicaid DSH Final Rule

The Centers for Medicare & Medicaid Services (CMS) issued Sept. 13 the final rule on the Medicaid disproportionate share hospital (DSH) cuts for fiscal years (FYs) 2014 and 2015. The final rule outlines the methodology CMS will use to make annual reductions to DSH payments for these two years. The methodology encourages states to target their DSH dollars to hospitals with high levels of Medicaid inpatients and uncompensated care costs. A special update with more detailed analysis of the final rule will be sent to members of America’s Essential Hospitals this week. If you have questions or concerns, please contact Xiaoyi Huang, assistant vice president for policy, at xhuang@essentialhospitals.org or 202-585-0127.

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