Chapter 1 of the June 2023 Report to Congress on Medicaid and CHIP focuses on safety-net hospitals. The Commission recommends automatic adjustments to disproportionate share hospital (DSH) payments, which are jointly financed between the federal and state governments and are statutorily required to offset hospitals’ uncompensated care costs and support the financial stability of the nation’s safety-net hospitals.
The Commission recommends four actions that would improve the relationship between total DSH funding and the need for DSH payments to provide states with greater certainty regarding available DSH funds. These recommendations aim to enhance the financial stability of safety-net hospitals and offset uncompensated care costs.
From: June 2023 Report to Congress on Medicaid and CHIP