Texas Children's Hospital Sues State Over Disproportionate Share Payments

Texas Children's Hospital in Houston has filed suit against the state's health agency to halt pending changes to the Medicaid disproportionate share hospital program, according to a Houston Business Journal report.

Pending changes to the DSH program stem from CMS, as a change in interpretation of the formula would cost Children's Hospital of Texas an estimated $30 million this year.

The hospital filed suit against the state's Health and Human Services Commission earlier this month, as that agency administers Medicaid, but the lawsuit may move to a federal court.

"Unfortunately, HHSC feels compelled to follow CMS' announced Medicaid rule reinterpretation so Texas Children's has determined it has no choice but to move forward with the lawsuit to challenge the faulty interpretation and resolve the dispute," Texas Children's said in a statement.

Texas Children's is one of the largest pediatric hospitals in the country and the sixth-largest hospital in Houston, according to the report.

More Articles on Disproportionate Share Hospitals:

CMS Lays Out Formula for Medicaid DSH Cuts
CMS Releases Final Rule on 2014 Inpatient Payments
8 Maine Hospitals Sue Secretary Sebelius Over Repayment Decision

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