Positively Impact Your Hospital’s Payment Stream with DSH

With all the recent changes in health insurance, it would be simple to assume that how much a hospital will be paid is out of its control. But there are still some opportunities for a hospital to potentially impact its payment stream from Medicare in a positive way. 

For some Prospective Payment System (PPS) hospitals there is an additional funding mechanism to pay for “disproportionate share” (DSH). DSH is funding to hospitals that treat indigent patients under which facilities are able to receive at least partial compensation. The dollars paid are determined using a formula that includes several factors which are determined by the individual hospital and by CMS.

A hospital can influence its own factor by monitoring and reviewing patient days to ensure it is capturing all days that are permitted by the regulations.

Tip #18:

Review DSH percentage for accuracy and confirm appropriate amounts under the new payment methodology.

Further guidance can be found on the Centers for Medicare and Medicaid Services (CMS) website:

Disproportionate Share Hospital (DSH)

Questions? Please contact Marie White at 612.253.6546 or mewhite@eidebailly.com.


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