CHA News

CMS Issues Proposed Rule on Medicaid DSH Third-Party Payments

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The Centers for Medicare & Medicaid Services (CMS) has issued a proposed rule that updates regulatory requirements of the Medicaid disproportionate share hospital (DSH) program.  

The proposed rule, which was issued in response to the Consolidated Appropriations Act of 2021 (CAA), seeks to implement the DSH-related provisions of the CAA concerning the treatment of third-party payments for purposes of calculating Medicaid hospital-specific DSH limits. It also seeks to clarify regulatory payment and financing definitions and other regulatory language. 

CHA is currently reviewing the regulation and will consult with impacted member hospitals to inform comments. Additional details will be provided in the coming weeks. Comments are due to CMS by 2 p.m. (PT) on April 25.