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CMS Revises Medicare DSH Payment Amounts for FY 2019

The Centers for Medicare & Medicaid Services (CMS) issued a correction notice making technical and typographical corrections to the fiscal year 2019 Inpatient Prospective Payment System (IPPS) final rule.

These changes include recalculating the Factor 3 values used for determining individual hospitals’ Medicare disproportionate share hospital (DSH) uncompensated care–based payment amounts. Factor 3 represents each hospital’s share of uncompensated care costs relative to all DSH-eligible hospitals nationally.

CMS’ revised data results in minor changes to hospitals’ projected Medicare DSH uncompensated care–based payment amounts in FY 2019. Hospitals can access the updated Factor 3 values in the Medicare DSH supplemental data file on the CMS website.

CMS also made corrections to hospital wage index data, the fixed-loss cost threshold for outliers, and the IPPS budget neutrality adjustment factors.

Contact Senior Director of Policy Erin O’Malley at eomalley@essentialhospitals.org or 202.585.0127 with questions.

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About the Author

Shahid Zaman is a senior policy analyst at America's Essential Hospitals.