CMS Announces 2014 Funding for Medicaid Disproportionate Share Hospitals

CMS has released preliminary Medicaid disproportionate share hospital allotments to the states for fiscal year 2014.

The allotments — which vary by state — total $11.7 billion, with California, Texas and New York receiving the most at more than $1 billion each. The funding doesn't include DSH reductions scheduled for 2014 under the Patient Protection and Affordable Care Act, since the Bipartisan Budget Act of 2013 eliminated those cuts. The bill also delayed fiscal year 2015 DSH cuts until 2016, while extending the duration of DSH payment reductions through fiscal year 2023.

Under the Patient Protection and Affordable Care Act, Medicaid DSH payments to hospitals were originally scheduled to be cut by $18.1 billion from fiscal year 2014 to FY 2020. Healthcare industry members and policymakers have advocated for delaying or eliminating the cuts on the grounds that they will directly lead to financial hardship, layoffs and reduced services at hospitals.

More Articles on Medicaid DSH Payments:
Georgia Hospital CFO: Loss of DSH Payments Will Sting
AHA: Hospital Medicare, Medicaid Payments Cut by $113B Since 2010
102 Safety-Net Hospital CEOs: DSH Cuts Will Lead to Layoffs, Financial Hardship 

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