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Implementation of Medicaid DSH Third-Party Payer Final Rule Delayed

In August, the United States Court of Appeals for the District of Columbia Circuit (D.C. Circuit) issued a decision in Children’s Hospital Association of Texas (CHAT) v. Azar, reinstating a 2017 final rule governing the treatment of Medicare and commercial payments in calculating the hospital-specific Medicaid disproportionate share hospital (DSH) funding limit. The implementation of the D.C. Circuit’s decision and the 2017 final rule now will be delayed.

The CHAT plaintiff hospitals have filed a petition for rehearing, asserting that the D.C. Circuit’s decision was legally erroneous. The D.C. Circuit now must decide whether to grant a rehearing. While rare, rehearings may be granted, if necessary, to ensure the uniformity of the court’s decisions or to address a question of exceptional importance. America’s Essential Hospitals will closely follow developments in the CHAT case.

Contact Senior Director of Policy Erin O’Malley at or 202.585.0127 with questions.

This article was prepared for America’s Essential Hospitals by Eyman Associates and does not constitute legal advice.


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