DSH
also known as: Disproportionate Share Hospital · DSH Adjustment
A Medicare payment adjustment for hospitals serving disproportionately high shares of low-income patients.
DSH (Disproportionate Share Hospital) payments are Medicare's compensation for hospitals serving disproportionately high shares of Medicare SSI recipients and Medicaid patients. The Affordable Care Act split DSH into two parts:
- 25% of historical DSH continues as an empirical "DSH adjustment" added to each discharge's IPPS payment, based on the hospital's disproportionate-share patient percentage
- 75% goes into a national "uncompensated care pool" that gets redistributed based on each hospital's share of national uncompensated care, measured via Worksheet S-10
The uncompensated care pool is roughly $9-10B/yr. Schedule H community benefit reports and S-10 uncompensated care data are the two main data sources for evaluating where DSH money ends up.
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