District Court Orders HHS to Recalculate Medicare DSH Payments

The U.S. District Court for the District of Columbia has ordered (pdf) HHS to re-evaluate Medicare disproportionate share hospital payments for more than 100 hospitals and medical centers and pay interest on any additional amounts owed after recalculation.

HHS disperses Medicare DSH payments to hospitals on top of regular Medicare fee-for-service payments to help cover the costs associated with caring for the very poor.

Previously, the hospital plaintiffs argued that HHS miscalculated Medicare DSH payments. They said HHS excluded Medicare Advantage, or Part C, inpatient hospital days from the DSH calculation when they should have been included. In November, the same district court ruled that that rule must be vacated due to the agency's "gravely flawed" rulemaking process.

The most recent opinion, issued Dec. 31, 2012, did not say how much each hospital will receive in extra Medicare DSH payments.

More Articles on Medicare DSH Payments:

Study: Hospitals in States With No Medicaid Expansion Face Financial Crisis
U.S. District Court Voids HHS' 2004 Changes to Medicare DSH Payments
7 Statistics on Disproportionate Share Hospital Payment Cuts

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