Noteworthy News

NAUH Projects Hospital DSH Losses

The National Association of Urban Hospitals (NAUH) has developed a model that projects how much Medicare disproportionate share (Medicare DSH) revenue individual hospitals may lose beginning in FY 2014 under the terms of the Affordable Care Act.

That model shows that many private, non-profit urban safety-net hospitals will lose more than $1 million in Medicare DSH revenue in FY 2014 alone.

According to the 2010 health reform law, Medicare DSH payments are to be cut 75 percent, with some of this reduction to be redistributed to hospitals based on how much uncompensated care they provide.

When consultants to the Centers for Medicare & Medicaid Services (CMS) recently unveiled the methodology they will recommend to CMS for calculating hospitals’ uncompensated care costs, NAUH immediately constructed a computer model to simulate how Medicare DSH money might be redistributed based on that methodology.  NAUH’s database includes Medicare cost report S-10 worksheet data on uncompensated care from almost every Medicare DSH-eligible hospital in the country.

Officials of urban safety-net hospitals interested in learning more about their own hospital’s potential Medicare DSH loss may contact NAUH executive director Ellen Kugler at 703-444-0989 or ellen@nauh.org for further information.NAUH Logo

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