DSH Audit and Reporting Rule

The Medicaid Disproportionate Share Hospital (DSH) Reporting and Audit Rule, which has been in effect since 2008, requires states to report to CMS about DSH payments made to individual hospitals and limits the types of costs a hospital may claim to receive DSH payments. Under this rule, hospitals would not be paid for physician costs and pharmaceuticals for the uninsured and for uncompensated care for the underinsured. NAPH supports transparency in the Medicaid program, but has requested that the Obama Administration revise the portions of the rule that would cut payments to hospitals for services provided to un- and under-insured patients.

Resources for this section

  • NAPH Submits Comments on Proposed Rule Regarding Medicaid DSH Uninsured Definition (January 2012)

    NAPH submitted comments that expressed appreciation with CMS for acknowledging that the 2008 definition of the uninsured excludes costs of medically necessary services, which would significantly limit hospitals’ funding. NAPH urged CMS to finalize the proposal to change the definition of the uninsured to a service-specific definition, which includes the costs of their care in the DSH limit calculation.

  • CMS - DSH Audit and Reporting Requirements:

    The state-specific annual DSH reports and audits can be found on CMS' website.

  • March OurView DSH Audit Rule - 125pxOurView - Revise the Medicaid DSH Audit and Reporting Rule

    (March 2011) In December 2008, the federal Centers for Medicare & Medicaid Services (CMS) issued a final DSH audit and reporting rule. Unfortunately, the rule goes beyond congressional intent by making substantive DSH policy changes that go beyond the scope of the rule-making process and congressional intent. NAPH urges the Administration to limit the scope of the rule to increasing transparency through greater auditing and reporting.

  • Final Rule Regarding Medicaid DSH Reporting and Audit Requirements

    On December 19, 2008, the Centers for Medicare and Medicaid Services (CMS) published the long-anticipated Final Rule establishing new Medicaid disproportionate share hospital (DSH) reporting and audit requirements which were mandated by Section 1001(d) of the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (MMA). The rule finalizes a proposal issued August 26, 2005. This memorandum provides a summary of the Final Rule.

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