Hospitals With Higher Reliance On Medicaid Disproportionate Share Payment More Likely To Be In Weak Financial Condition

Hospitals with a higher than average reliance on Medicaid Disproportionate Share Hospital (DSH) payments are more likely to be in weak financial condition than hospitals with lower reliance on Medicaid DSH payments. Of the hospitals with high reliance on DSH payments (defined as more than 2.52% of revenue), 42% were in weak financial condition, compared to about 20% of hospitals with low reliance on Medicaid DSH payments. Hospitals in "weak" financial condition were those whose operating margins were in the bottom quartile in a nationwide comparison of hospital operating margins.

Of 2,104 acute care hospitals eligible for Medicaid . . .