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SKU: IF10422_2019-02-26.pdf Categories: , Tag:

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Author: Alison Mitchell, Analyst in Health Care Financing

Release Date: 2/26/2019

Number of Pages:  2

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The Medicaid statute requires states to make disproportionate share hospital (DSH) payments to hospitals treating large numbers of low-income patients. This provision is intended to recognize the disadvantaged financial situation of those hospitals because low-income patients are more likely to be uninsured or Medicaid enrollees. Hospitals often do not receive payment for services rendered to uninsured patients, and Medicaid provider payment rates are generally lower than the rates paid by Medicare and private insurance. (See CRS Report R42865, Medicaid Disproportionate Share Hospital Payments.)