June 22, 2010

Review of Medicaid Disproportionate Share Hospital Payment Distribution (A-07-09-04150)

The Office of the Inspector General (OIG) released this report on June 22, 2010 recommending that the Centers for Medicare and Medicaid Services (CMS) evaluate how DSH payments are distributed among hospital categories. In addition, CMS should consider requesting congressional legislation to assure a more even distribution of payments based on uncompensated care costs. OIG analyzed the relationship between DSH payments and uncompensated care costs of four hospital categories in seven states for the fiscal years 2003 through 2007. The hospital categories reviewed were: State-owned IMDs, other State-owned hospitals, local public hospitals, and private hospitals in the following selected states: Kansas, Louisiana, Missouri, New Jersey, New York, North Carolina, and Texas.