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MS SPA 21-0051 Disproportionate Share Hospital (DSH) Payment Update Submitted to CMS

On December 27, 2020, the Consolidated Appropriations Act for 2021 was signed into law after it was passed by Congress, which changes the calculation of a hospital’s DSH limit, OBRA, to remove costs and payments of individuals with Medicare or third-party coverage, with the exception of hospitals that meet the 97th percentile for the most recent reporting period. Although this is a requirement for the DSH examinations/audits, the Division of Medicaid intends to be consistent with the calculation of uncompensated care costs and apply it to the DSH payment calculations.

For more information read the submitted SPA pages.