CMS makes changes to DSH rules

The Centers for Medicare & Medicaid Services has issued a final rule on how how to define uninsured patients for the purpose of collecting disproportionate share hospital (DSH) payments that may offer relief to some hospitals. The final rule allows the cost of inpatient and outpatient hospital services provided to Medicaid patients who have reached state coverage limits to be used in calculating the hospital's Medicaid shortfall. Insured patients who have also bumped up against annual or lifetime caps in their policy may also be counted as uninsured. CMS indicated the although the new rule change would have a minor impact on hospitals as a whole, those treating more patients who have exhausted their benefits are likely to receive higher DSH payments. Article

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