Noteworthy News

DSH Losses Will Hurt Safety-Net Hospitals

Safety-net and other hospitals will suffer financially when Affordable Care Act-mandated cuts in Medicare disproportionate share hospital payments (Medicare DSH) and Medicaid DSH payments begin taking effect in FY 2014.

So concludes Moody’s, the bond-rating agency.

The losses will be especially harmful to hospitals in states that do not expand their Medicaid programs and to safety-net hospitals, Moody’s believes.

Hospitals face other specific challenges as well as a result of these cuts.

The National Association of Urban Hospitals has pointed out the potential impact of the loss of Medicare DSH payments, in particular, on urban safety-net hospitals.  Its September 2012 report “The Potential Impact of the Affordable Care Act on Urban Safety-Net Hospitals” quantifies that impact.

NAUH also has asked Congress to delay implementation of a new approach to calculating future Medicare DSH payments until problems with the data on which such calculations will be based can be addressed.  See NAUH’s position paper on that issue here.finance

Read more about Moody’s assessment of the impact of future Medicare DSH and Medicaid DSH cuts in this report in Becker’s Hospital Review.

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