On Oct. 4, the Department of Health Care Services (DHCS) notified CHA that due to the passage of House Resolution 5860, which delayed the implementation of the Affordable Care Act Disproportionate Share Hospital (DSH) reduction until after Nov. 17, the department will not reduce the July-September 2023 round of DSH payments.
This includes funding for hospitals that come under the federal DSH allotment (public and district hospitals) and those funded under the DSH Replacement program (private hospitals). District and private hospitals are tentatively scheduled to receive the July-September 2023 DSH payment on Oct. 26.
It is important to note that if the DSH reduction is not further delayed through subsequent federal legislation prior to Nov. 17, any DSH payments made after Nov. 17, will likely be made based upon the reduced allotment released by the Centers for Medicare & Medicaid Services, if and until a further delay in DSH cuts is federally enacted. This would also require an offset in future payments to account for the higher payments received for the July-September cycle, which would otherwise have been reduced.