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Disproportionate Share Hospitals

Overview

Title XIX of the Social Security Act (Act) authorizes grants to states for Medicaid programs. Section 1902(a)(13)(A)(iv) of the Act requires that states make Medicaid payment adjustments for hospitals that serve a disproportionate share of low-income patients with special needs.

On December 19, 2008, the Centers for Medicare & Medicaid Services (CMS) published a final rule in the Federal Register (73 Fed. Reg. 77904) implementing the reporting and auditing requirements for state Disproportionate Share Hospital (DSH) payments under state Medicaid programs, effective January 19, 2009. The final rule:

  • Sets forth the data elements necessary to comply with the DSH auditing and reporting requirements of Section 1923(j) of the Act. These requirements were added by Section 1001(d) of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA). 
  • Requires states to verify their methodology for computing the hospital-specific DSH limit and the DSH payments made to hospitals. 
  • Adds Sec. 455.204(a) to reflect Section 1923(j) of the Act’s requirement that each state must submit annually an independent certified audit of its DSH program as a condition for receiving federal payments under Sections 1903(a)(1) and 1923 of the Act. 

States have been required to obtain an independent certified audit, beginning with an audit of the State fiscal year (FY) 2005 DSH program and thereafter. Beginning with Medicaid State Plan years 2011 and thereafter, the Oregon Health Authority (OHA) is required to recover DSH payments made to a hospital in excess of its audited DSH limit. 

DSH Surveys

Myers and Stauffer LC conducts surveys for OHA to ensure DSH payments comply with federal requirements. The most recent survey documents are listed below.

  
  
2016-DSH-Survey-Medicaid-Shortfall.docx2016 Survey Letter - To providers meeting the Medicaid shortfall
2017-DSH-Survey-Standard.docx2017 Standard Survey Letter
2017-DSH-Survey-Medicaid-Shortfall.docx2017 Survey Letter - To providers meeting the Medicaid shortfall
DSH-Survey-Part-I.xlsDSH Survey Part I - DSH Year Data
DSH-Survey-Part-II.xlsmDSH Survey Part II - Cost Report Year Data

DSH Quick Links

Methodology and rules

Oregon Administrative Rule 410-125-0150

Oregon's Medicaid State Plan

References

CMS DSH Payments and Audit Information

Federal DSH Audit Rule

DSH Audits

  
  
FY 2011 DSH Audit.xlsx2011
FY 2012 DSH Audit.xlsx2012
FY 2013 DSH Audit.xlsx2013
FY 2014 DSH Audit.xlsx2014
FY 2015 DSH Audit.xlsx2015
FY 2016 DSH Audit.xlsx2016
2017-DSH-Audit.xlsx2017
2018-DSH-Audit.xlsx2018