OIG Releases Report on Medicaid DSH Payments - July 14, 2010

On June 22, the U.S. Department of Health and Human Services Office of Inspector General (OIG) released a report outlining its review of Medicaid disproportionate share hospital (DSH) payments in seven states from fiscal years 2003 to 2007. Of the states surveyed, the report showed that DSH payments in public hospitals averaged 95 percent of their uncompensated care costs (UCC), while such payments only accounted for 38 percent of UCC for private hospitals. While the report recommended legislation aimed at requiring a more even distribution, the Centers for Medicare and Medicaid Services noted that the Patient Protection and Affordable Care Act will likely require significant revisions to DSH payments, and that it would later reevaluate the need to request additional legislation.