Medicaid: Ongoing Federal Oversight of Payments to Offset Uncompensated Hospital Care Costs Is Warranted

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DIANE Publishing, 2010 - 53 pages
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In addition to standard Medicaid payments, hospitals receive supplemental payments for uncompensated costs of care provided to uninsured and Medicaid patients. These supplemental payments are referred to as disproportionate share hospital (DSH) payments. In FY 2006, DSH payments totaled about $17 billion and non-DSH supplemental payments exceeded $6 billion. Hospitals' DSH payments are limited to their uncompensated care costs, that is, their costs for covered care less Medicaid and other payments. This report examined: (1) how state DSH payments in 2006 compared to DSH payment limits; and (2) certain aspects of states' calculations of 2006 DSH payment limits. Charts and tables.

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